BNB babcock & brown limited

book value, page-5

  1. 6,716 Posts.
    No you are wrong. Its not an issue of writing down the "equity" by 75%. The "equity" doesnt represent anything more than the difference between the assets and debts.

    A 20% reduction in assets ( and the debts not changing ), results in a 100% reduction in the equity ( i.e. net assets ie book value )
 
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