2019 sept/dec q3(b) Kerrin & danton

22009puser6y ago

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

John MoffatTutor6y ago#1

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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