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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › makonis co 12/13 (b)
It is stated in the question that in order to pay 30% premium, makonis co have cash reserves.my question is if they have sufficient cash,why in bpp exam kit answer it is stated that 30% premium is paid from additional value created through acquisition? I mean simply cash to be paid and not to pay from additional value,and additional value to be unchanged. Thanks in advance.
But they are not paying only cash. The question says that they are giving cash plus shares – only part of the premium is in cash.
