Skip to content
Sign inRegister

Ask the Tutor ACCA AFM

BPP 28 Maconis (B)

VVeronikaSupporter5y ago
Dear John, I do not understand where the authors got the figures for Maconis shareholders take $359.94 (30% extra cash) and $263.94 (for 50% extra cash). I would assume 480-144 and 480-240? Please, explain, how they did that calculation? Thanks, Veronika
John MoffatJohn MoffatTutor5y ago#1
The additional value created from the combined company is $503.94 (as calculated in part (a)). This is shared between Nuvola's shareholders and Makonis's shareholders. If Nuvola get a 30% premium, then they get $144, and the balance goes to Makonis. If Nuvola get a 50% premium then they get $240 and the balance goes to Makonis.
VVeronikaSupporter5y ago#2
Ok, thank you!
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
Topic lockedNew replies are closed.