[Ania]

Dear Sir,

Can you please explain a reason as to why the post acquisition beta of Omnigen has not been de-geared and then re-geared using the gearing of Lacto.

Also, as the gearing of Lacto will change as a result of this acquisition, isn’t it type II of acquisition?

Many Thanks.

[Ania]

Dear Tutor,

Can you please reply to the question posted by firedolphin at the top of this page.
It is a little bit confusing what needs to be included in the return phase and what should go to an investment phase..
Also, as regards Neptune question that came up in June 2008 reinvestment rate that is used in the MIRR solution is ungeared cost of equity. What is the reason for using ungeared cost of equity and not WACC?

Thanking you in advance.

[Author]

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