he excerpt was taken from an article published on April 7, 2015 in The Philippine Star; “Ayala Land Inc. (ALI) has started the ball rolling for its planned PHP7 billion debt sale to partially finance its record PHP100 billion capital expenditures (capex) this year” Discuss the possible effects of this financing on the capital structure of Ayala Land Inc. How will this financing affect the statement of profit or Loss of Ayala Land, Inc.?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1.The excerpt was taken from an article published on April 7, 2015 in The Philippine Star;

“Ayala Land Inc. (ALI) has started the ball rolling for its planned PHP7 billion debt sale to partially finance its record PHP100 billion capital expenditures (capex) this year”

Discuss the possible effects of this financing on the capital structure of Ayala Land Inc. How will this financing affect the statement of profit or Loss of Ayala Land, Inc.?

2. The following excerpt was taken from an article published in Inquerer.net on February 10, 2015.

“Infrastructure holding firm Metro Pacific Investments Corp. has raised 200 million dollar in fresh funds from expansion through an overnight equity private placement deal”

According to the management, proceeds from this fundraising activity will be used to retire the more expensive debt of its affiliate, Beacon Electric Asset Holdings, Inc.

Metro Pacific Investments Corp. (MPIC) is the holding company behind Meralco, NLEX, Maynilad and hospitals like Makati Medical Center.

Discuss how this fundraising activity will affect the statement of financial position of MPIC. How will this affect the financial position and profitability of its affiliate, Beacon Electric Asset Holdings, Inc.?

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