- This topic has 1 reply, 2 voices, and was last updated 7 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘CIGNO CO(SEP/DEC15)’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › CIGNO CO(SEP/DEC15)
in CIGNO CO (SEP/DEC15)
1. why do we need to combine both to get 0.71 ????, since we are only valuing Anatra Co, shouldn’t we suppose to use only beta equity of Anatra Co ??? not combining with Cigno Co ?
We are not valuing Anatra in isolation. We are asked for the value attributable to Cigno’s shareholders from the acquisition, and the acquisition will change the cost of capital (as stated in the question) and will change to the total cash flows due to synergy benefits – both of these will affect the value of the company after the acquisition.