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Maximum premium to be paid

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Maximum premium to be paid

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • May 31, 2018 at 9:43 am #455046
    Avataradurich
    Member
    • Topics: 127
    • Replies: 120
    • ☆☆☆

    In exam questions when they ask Maximum premium to be paid by acquirer to acquire a firm ..like in qs Vogel

    We do it by taking out combined value of business minus value of both business separately

    ..are there other ways to calculate maximum premium ..what are the possible methods and how we calculate minimum premium to be paid ..

    May 31, 2018 at 3:58 pm #455107
    AvatarJohn Moffat
    Member
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    If you are asked for the maximum premium that the acquirer can afford to pay, then it is exactly as you have written.

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