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Nente co

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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February 13, 2020 at 9:28 am #561641
rimshy
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Sir i cannot understand how the gain to mije co shareholders have been calculated for both cash and share for share offer please explain …i got the answer of 5.13 ie gain to nente co shareholders but i have doubt in it as why we are using boot strapping method in this case as we use that only if PE Ratio of seller is higher than that of buyer
I thought the combined market value could also be calculated by ( 48000+6960+150)=62910
February 13, 2020 at 4:28 pm #561707
John Moffat
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The question specifically says that Nente will operate on a PE level of 15. We are using 15 because the question says so, which is nothing to do with assuming bootstrapping.
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