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maximum premium

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › maximum premium

Viewing 2 posts - 1 through 2 (of 2 total)
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  • March 6, 2017 at 2:25 pm #375968
    genty
    Member
    • Topics: 27
    • Replies: 33
    • ☆☆

    Greetings John

    What does maximum premium on acquisition tell us and why is it calculated?

    Thanks

    March 6, 2017 at 4:01 pm #376014
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54500
    • ☆☆☆☆☆

    The premium on acquisition is the gain that will be made and will help determine the maximum amount that the acquiring company will be prepared to pay for the company that they are acquiring.

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