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Dear John,
In part (i) examinar mentioned that “However, once Fodder co’s debt obligation and the equity shareholders have been paid, the benefit to Pursuit Co. shareholders reduced to approximately $ 52000.
I do not underastand how the examinar has arrived to this number.
Thanks
He shows at the very end of the appendix. The synergy benefits are 9.074M; the premium to acquire Fodder is 9.022M. That leaves a net benefit of the difference of 0.052M
Dear John,
Thank you for the reply. However, I want through the very end of the appendix but I could not understand how the examinar has arrived to $52000/- as the net benefit to Pursuit Com to that shareholders.
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