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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › March June /2021 Q#1 Chakula co Kawa co Share
Total corporate value: $1,882·7m
Value attributable to equity: 75% x $1,882·8m = $1,412·0m
Per share value = $1,412·0m/2,000 million shares = $0·71 per share
Kawa Co original value = $1,200m/2,000 million shares = $0·60 per share
Gain = ($0·71 – $0·60)/$0·60 = 18·3%, if Kawa Co gets demerged
Dear Sir,
My question from where we can get the 2000 million share. This shares for the whole company and in my opinion the share of Kawa co is 490. The 2000 million share is to the whole co.
Bizuayehu
Chakula has 2,000 million shares (given in the question).
Demerging Kawa will not change the number of shares in Chakula.
Dera Sir, I get it.
Thank you