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VALUATION OF ACQUISITIONS

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › VALUATION OF ACQUISITIONS

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • May 16, 2017 at 7:22 pm #386523
    Fred
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    In the solution to example 4 of the open tuition notes on Valuation of Acquisitions and Mergers, How did you arrive at the cash flows of 35, 42, 47, 52 and 207 for the years 1,2,3,4 and 5 respectively

    May 16, 2017 at 8:36 pm #386547
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54821
    • ☆☆☆☆☆

    They are the totals of the cash flows of the two companies, plus the synergistic benefits of 10 per year, which after tax at 30% are 7 per year.

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