Please help me understand on the answer in part C
on the Amount of MBO funds needed to be pay shareholders
How do we arrive to 60(Amount of MBO funds needed to pay shareholders)
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Doric Co - Pilot Paper - BPP Revision Kit
Hi Tutor
9y ago#2The current market value of the shares in Doric is $40/0.40 = 100m shares x $0.50 = $50M.
The question says that they will be purchased at a premium of 20%, so $50M + 20% = $60M.
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