[polly215]

Thank you John and Cathal! very helpful to understand these perspectives!

[polly215]

Sorry John..please allow me to rephase the question better..

The share price offered to acquiree is the new combined company’s share price when question requires to calculate the gain in share price for acquiree (e.g. Q1(c-ii) Dec 2018). However for Q2(b) in Mar/Jun 2016, the answers for P/E ratio uses acquirer’s current share price (prior to acquisition) as the share price offered to the acquiree. I’m unsure when to use the combined company’s share price and when to use the acquirer’s current share price..would you be able to help?

Thanks very much in advance again John.

Links to Q2(b) in Mar/Jun 2016:
https://www.accaglobal.com/content/dam/ACCA_Global/Students/prof/p4/Exam%20docs/mj16_hybrid_p4_q.pdf

https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p4/exampapers/P4%20Hybrid-2016-June-a.pdf

Links to Q1 (c-ii) Dec 2018:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p4/exampapers/afm-2018-dec-qp.pdf
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p4/exampapers/afm-2018-dec-ans.pdf

[polly215]

Thanks very much John!

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