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How do you get the (Mv of equity) combined company, cash payment through debt borrowing? I can not figure out how $2,933·7m is gotten.
Q2. What is a partial listing?
I am away on vacation until Saturday and do not have access to the question.
Please ask again on Saturday and I will answer you then when I am home 🙂
As far as a partial listing is concerned, it is simply when only some of the shares are listed on a stock exchange (and those shares are then easily traded).
How do you get the (Mv of equity) combined company, cash payment through debt borrowing? I can not figure out how $2,933·7m is gotten.
The PE valuation of equity in the combined company is $4,253.7M as calculated in appendix 3 of the answer.
If there is a cash payment of $1,320M then the value of the equity remaining will be the difference of $2,933.7M (just as is the case with a straight cash offer).
A quick question, can you pass ACCA Diploma in Financial and Management Accounting (RQF Level 2) by using OpenTuition notes only?
hi sir , i dont get it , why the company partial listing ? Thank you in advance sir
As it is unlisted it will be hard for shareholders to find someone to buy their shares should they want to sell. If there is a partial listing then it will be easier to sell their shares on the stock exchange.
(It is a small point that the examiner mentioned in his answer, but it was not needed in order to pass the exam 🙂 )
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