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Please I need help on the exact way of arriving at the average price of shares when there is a share for share acquisition. Comparing Hav co(6/13), Makonis co (12/13) and sigra (12/12). Thanks.
You don’t say what help you need!!
I assume you mean whether to use the current share price of the acquiring company or the new share price.
Which one depends on whose point of view you are asked to consider. The shareholders of the target company will not know the likely new share price and so will base their thinking on the existing share price.
the acquiring company will know the likely new share price and so will base their thinking on the likely new share price.
If it is not clear which from the question, then state your assumptions (as always in P4) and you will still get credit.
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