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Nente Co(06/12, amended)

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Nente Co(06/12, amended)

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  • November 21, 2015 at 4:15 am #284254
    zhaoyunyi
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    • Topics: 21
    • Replies: 6
    • ☆

    Hi Sir,

    Q86 at Bpp exercise book
    Part a(iii): when estimate the percentage gain of Nente’s share due to the follow on product, I think the value of the product should be the original PV+option value=405000+609021

    But why in the answer, it only consider the option value but ignore the original value of the product?!

    Thanks

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