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Capital structure arbitrage

Financial Management

Sir the two questions seems same one is icai module illu 9 and other mock april 2023 Q4....in 4th que ans they have purchased debt of levered company while in icai module they have lent money...what is to be done

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Gauri Shete

CA Final

★ 4K+

18-Apr-23 16:54

196

Answers (1)

Best Answer

In both cases the method is the same. Just that the terminology in the latter is used as lending which Is nothing but buying the debt component.. it is advised to mention as “buying” only to avoid confusion