[HighFive]

My confusion regarding this is that some of the question’s Answers apportions the TOTAL value of combined co to the Equity and Debt value and calculates the synergy benefit on the Equity value method while some questions does not and calculates the synergy based on the TOTAL value

For example using Cigno co

Would it be wrong for me to apportion the Value of the RND to Equity value 60% (
$19130M) plus the $5594M of manufacturing business minus Equity value of Anatra Co to get the Synergy value and then minus the premium payable to get negative value to the current shareholders of Cigno

[HighFive]

HighFive wrote:But i thought the BSOP calculated the value of the real option, then add it up to the value of the project itself (NPV) to get the real value of the project

A good example would be June 2011 Mesmer Magic Co

The NPV of the project itself is calculated in addition to the Real option value that together forms the true NPV of the project

[HighFive]

But i thought the BSOP calculated the value of the real option, then add it up to the value of the project itself (NPV) to get the real value of the project

[Author]

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