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makonis co (Dec 13)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › makonis co (Dec 13)

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 28, 2018 at 4:08 am #469738
    foeldh123
    Participant
    • Topics: 168
    • Replies: 76
    • ☆☆☆

    for question (b), the question is asking us to estimate the impact on Makonis Co’s equity holders.

    Equity holders refer to the shares only

    Doesn’t this mean that we should only take into account the share impact not the cash ?

    this means for 30% premium the share is $580million and for 50% premium the share is $580million.

    Therefore shouldn’t the impact be 0 isn’t ?

    August 28, 2018 at 10:59 am #469817
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54722
    • ☆☆☆☆☆

    I don’t understand what you mean.

    The current market value is 480M, and therefore we add on 30% or 50% as the premium to get the total they are to be paid.

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  • The topic ‘makonis co (Dec 13)’ is closed to new replies.

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