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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 12/DEC 12(nente.co/sigra.co)
Sir it was up to my knowledge that PAT /total # of shares=EPS?when I attempted nente.co share to share exchange $3.97m/11.6m=34.2c but when I attempted sigra.co I got 46912.5/12875=3.64c but the examiner treated this as post share price $3.64 please help…
Thanking u always for the great job …
It depends whether you are looking at it from the point of view of the acquiring company (because they will know what flows to expect in the future) or whether you are looking at it from the point of view of shareholders in the company being sold, because they will not have information about the future and will base their decision on the current share price of the acquiring company.
If it is not clear which view to take in the question, then state your assumption clearly. Unless you have complete misread the question then you will still get the marks.