for question (b), the question is asking us to estimate the impact on Makonis Co's equity holders.
Equity holders refer to the shares only
Doesn't this mean that we should only take into account the share impact not the cash ?
this means for 30% premium the share is $580million and for 50% premium the share is $580million.
Therefore shouldn't the impact be 0 isn't ?
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makonis co (Dec 13)
7y ago#1I don't understand what you mean.
The current market value is 480M, and therefore we add on 30% or 50% as the premium to get the total they are to be paid.
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