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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2011 Pursuit Co Fodder Co (a)
1. The question states that Fodder’s debt is paid off upon acquisition. Which part of the calculation shows this? The answer doesn’t seem to minus the debt to calculate gain on acquisition, unlike in June 2012 Nente Co.
2. Why is the 25% premium calculated based on equity value of Fodder (which was 90%) instead of the entire company value of $40095?
Thank you.
