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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Makonis co
Hi John,
please can you explain to me why an increase in the premium from 30% to 50% will increase Makonis share by half of Nuvola shares.
Thank you
Please tell me which exam the question is in (I can’t remember the names of every question there has ever been 🙂 )
It’s 12/13
Thanks 🙂
I am not clear where you are getting “will increase Makonis share by half of Nuvola shares”.
If you mean the share price, then it is not increasing by half.
If you mean the number of shares, then the question says that they will be issuing one Makonis share for every two Nuvola shares. So the number of shares goes up by half of the number of Nuvola shares (but this is the same whatever the premium is).