Overall is fairly good question but.....
The Question 2 is a killing time question... ... It is an outstanding and high standard question that link with Subprime Crisis... ... It bring P4 to another level... ...
But I have some confuse with that question... ....
1. How to calculate the earning loss due to transfer those assets to new holding? (take portion of total asset, or take rental return X asset sold, or rental return + capital gain X assets sold)
2. How to calculate new earning under Option 1? (take rental return X asset sold, or rental return + capital gain X assets sold)
3. How to treat the reaming earning of new holding because rental return is 8% that higher than bond interest,5.7%? (as management fees for turn back to company, or no effect to company, or all give to bondholder)
Overall Examiner done a good job.
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