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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Cigno co hybrid Sept/Dec15
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.
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
Thank you sir for the quick response:-)
You are welcome 🙂
Hi John, when calculating the combined beta equity, why is Cigno’s debt and equity proportion taken?
We always use the values of debt and equity in the asset beta formula in order to arrive at the equity beta.
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.
That is correct – it is the same as what the examiner does in his answer 🙂
