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