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Cigno co hybrid Sept/Dec15

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Cigno co hybrid Sept/Dec15

  • This topic has 7 replies, 4 voices, and was last updated 7 years ago by John Moffat.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • June 5, 2016 at 9:17 am #319542
    anwaar92
    Member
    • Topics: 14
    • Replies: 16
    • ☆

    Hello sir,hope you are well.

    Kindly explain hw the value attributable to shareholders of 128 m was calculated and the 5609m after benefit of tax n redundancies

    Thanks.

    June 5, 2016 at 9:33 am #319549
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    The 128M is the difference between the total value of Anatra following the unbundling (37,478m) and the total value attributable to Anatra’s investors (37,350m). This leaves 128m attributable to Cigno’s shareholders.

    The 5,609m is the 128m above plus the PV of the saving in the tax and employments costs of 5,481M

    June 5, 2016 at 9:57 am #319554
    anwaar92
    Member
    • Topics: 14
    • Replies: 16
    • ☆

    Thank you sir for the quick response:-)

    June 5, 2016 at 1:03 pm #319600
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    You are welcome 🙂

    August 8, 2017 at 5:07 pm #401061
    parisnaaa
    Member
    • Topics: 32
    • Replies: 92
    • ☆☆

    Hi John, when calculating the combined beta equity, why is Cigno’s debt and equity proportion taken?

    August 9, 2017 at 7:07 am #401103
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    We always use the values of debt and equity in the asset beta formula in order to arrive at the equity beta.

    November 26, 2017 at 11:48 am #418060
    ameera98
    Member
    • Topics: 3
    • Replies: 34
    • ☆

    Are we calculating the synergy. As in, the combined company value -(Cigno alone + Anatra Alone)

    (60,000+R nd D (31884) + sale of manuf dept (5594) ) – (60000+30000)
    which equals 7478 out of which premium of 21000*35% goes to anatra shareholders and remaining to Cigno.

    Is this approach correct? I am trying to relate this to Makonis of December 2013.

    November 26, 2017 at 3:36 pm #418100
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    That is correct – it is the same as what the examiner does in his answer 🙂

  • Author
    Posts
Viewing 8 posts - 1 through 8 (of 8 total)
  • The topic ‘Cigno co hybrid Sept/Dec15’ is closed to new replies.

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