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Doubt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Doubt

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 19, 2015 at 8:22 pm #284037
    Avatarfarhana001
    Member
    • Topics: 34
    • Replies: 45
    • ☆☆

    Sir , June 2008 question 2 THP company, can you please explain me part d

    November 19, 2015 at 8:36 pm #284045
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    What is it you want me to explain?

    Is it what the question is asking for, or is it some part of the answer that you do not understand?

    November 19, 2015 at 8:38 pm #284047
    Avatarfarhana001
    Member
    • Topics: 34
    • Replies: 45
    • ☆☆

    1.Price paid for CRX co

    2. (ii) I did not get the question

    November 19, 2015 at 8:49 pm #284050
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    1. The question says that the purchase price for CRX is the rights issue funds raised less issue costs of $320,000. You have calculated in part (a) of the question how much is raised from the rights issue, so subtract 320,000 and that is then how much is paid for CRX,

    2. If the tax savings are made public then they will be reflected in the share price and so the share price will include the tax savings.

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