[samantha1987]

Thank you so much for the encouragement and explanations 🙂

[samantha1987]

Dear John,

Thank you very much. I understand.
So using 4.80 USD would be the viewpoint of the target, and by using 5.13 USD I would take the viewpoint of the acquirer.

However, I am still a bit uncertain how to approach such a question in the exam (apart from stating own assumptions in the worst case). In the Louieed (Mar/Jun 16) question (b), for instance, they asked for the effect on the target’s P/E ratio, and in the solution they took tha acquirer’s current share price. That is why I followed the same approach in the Nente question, which was obviously not the proposed solution.

[samantha1987]

Thank you very much, I understand now!

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