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Nente

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Nente

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • August 30, 2019 at 5:40 pm #543875
    sm8980
    Participant
    • Topics: 48
    • Replies: 38
    • ☆☆

    Hi there,

    Please could you let me know why for nente. Part ii, the % gain, they calculated $10.26 to compare with $8.70.
    Would it not be 5.13*3 shares to compare with 2.9*3 shares to see the increase in value? I understand the company is now combined but to assess the gain in value of nente to do 3 shares prior and 3 shares after of nente to the acquisition?
    And as it’s a 2 for 3, would it not be 2 mije shares prior to merge and then 2 after?

    Super confused on this part.

    Thank you for your help

    August 31, 2019 at 8:45 am #543935
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54735
    • ☆☆☆☆☆

    The question says that they get 2 shares in Mije (so 2 x $5.13 = $10.26) for every 3 shares that they currently own in Nente (so 3 x $2.90 = $8.70).

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