AFMjune 11 q1 nente

It is june 12 not 11. If Mije Co successfully acquires Nente Co, the expected value of a share of the combined company is $5.13 as calculated in the answer. Now the share exchange is two of Mije Co's shares for three of Nente Co's shares.Three shares of Nente Co will now be valued as two of Mije Co's which is $5.13*2 = $10.26. The market price of 3 Nente Co's shares before acquisition is $2.9*3=$8.7 So the value of Nente shares has increased from $8.7 to $10.26. Taking ($10.26-$8.7)/$8.7 = 17.9% Hope that helped Rockerz

oh ya itsss jun 12 ya i got it and thnksss alotttt buddy for helping ive some other queries also wil be kind if u do thankss again

hi in question 3 proposal jun 12 in proposal 1 where they got 280c figure in calculating retain earning 17.5m kindly do explain

The share price at the date of issue is 40c and at the date of repurchase it is $3.2(320c). The company is now buying back the shares at a price higher than dt for which it was sold.So in other words,the company is spending an additional 280c(320c-40c) on those shares and that is why $17.5m is being deducted from the retained earnings. The value of $17.5m can also be calculate thus,based on the above explanations. N° of shares $48m/40c = 120m The value of debt of $20m can be used to buy 6.25m($20m/$3.2) shares. The additional amount spent on buying back the 6.25m shares is given by: (320c-40c)*6.25m shares.=$17.5m Do u agree?

oh ya i do a big thanksss alotttt for solving my queries GOD bless you

do share p4 mock if u get

ALECTO DEC 11 From when 9 monthss are starting and how they hav shown 6 months remaining basis in calculating 0.18 the dates are confuisng me kindly explain thanks.