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Can we do this question using total market value of shares instead of market value per share.
My answer matches for part b when I use total shares and total earnings except for the mixed offer.Can you please help me how to calculate the mixed offer (60% shareholders take share and 40% take cash) PE ratio but taking total shares and total earnings not the way examiner wrote the answer?
Also, recent questions uses total values instead of per share value, how do we understand which one to use in a question?
The only really sensible way is the way that the examiner shows in his answer and I don’t see the point of trying an alternative way 🙂
How do we understand when to do using per share and when to do with total shares?
Sir, one more question is that in part b when we calculate the PE ratio implied, the EPS is constant for all offers to get the PE ratio, we calculate the new eps in part c.
I do not understand if the PE ratio will change based on the offer as Market value of shares is chainging, why is the earnings not changing in part b?
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