20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Chapter 16 The valuation of Acquisitions and Mergers — example 2

This topic has 2 replies, 2 voices, and was last updated 13 years ago by xuanguo.

Viewing 3 posts - 1 through 3 (of 3 total)

Author
Posts
September 14, 2011 at 5:09 am #49798
xuanguo
Member
- Topics: 4
- Replies: 1
I have a question for Chapter 16 example 2.
The discount total cash flows for 1 yr, 2yr, etc….5yrs are 34, 41, 46, 51, 206.
Can someone explain how to get those numbers from?
September 14, 2011 at 10:13 am #88059
joeackim
Participant
- Topics: 0
- Replies: 12
I think its total of the two companies cash flows plus the synergetic benefit of
10 p.a less the gain of 4 by Nairobi shareholders
For example in yr 1: Nairobi Cashflow 20 + Delhi CF 8 + Syng Benft 10 = total of 38 less gain of 4 = 34.
However there is need to clearly understand whats going on here. Somebody may clarify it better.
September 17, 2011 at 7:10 pm #88060
xuanguo
Member
- Topics: 4
- Replies: 1
until the final calculation, we know there is the gain of 4 by Nairobi Shareholders, how can we put this into the middle of calculation?
Author
Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.