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2019 sept/dec q3(b) Kerrin & danton

Forums › ACCA Forums › ACCA FM Financial Management Forums › 2019 sept/dec q3(b) Kerrin & danton

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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    Posts
  • July 10, 2020 at 8:06 am #576481
    2009puser
    Participant
    • Topics: 7
    • Replies: 1
    • ☆

    Dear Sir
    Could you show how to calculate the increase in shareholder wealth
    In cash offer 4.2% Kerrin Co & 24.1% Danton Co
    In share-for- share 1.7% & 30.9%
    Thanks

    July 10, 2020 at 9:08 am #576503
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    For Kerrin (cash offer) the new value is 4127.7 as against the old value of 3960.
    So the increase is (4127.7 – 3960) / 3960 = 4.2%

    For Kerrin (share for share offer) the new value is 4028.2 as against the old value of 3960.
    So the increase is (4028.2 – 3960) / 3960 = 1.7%

    It is the same workings for Danton.

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