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Hi tutor, I would like to ask for this qns the synergy savings is 5625000×0.30=
1,687,500 but why the answer when commenting on the results it uses 5625000(1250k x4.5) x percentage gain?Thanks.Remember that Sigra is buying Dentro and therefore not all of the synergy gain will go to Dentro’s shareholders.
I assume that you are happy with the calculation earlier in the answer of the percentage gain in the share price. All he is calculating in this comment is how much gain will therefore go to the existing shareholders of Dentro.
Hello Tutor
Hope you are doing good.In this question, option 2
Share for share exchange
equity value is calculated for both companies and then synergy is added. My question Can i solve this problem by this equation?= EPS x P/E
If yes, then where will I add the synergy? Can you help me on this?
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