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Nente Co (June 2012) Continued

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Nente Co (June 2012) Continued

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 13, 2017 at 2:49 am #401646
    Chidinma
    Member
    • Topics: 10
    • Replies: 16
    • ☆

    Hi John

    Please explain why P/E ratio was used even though I could have added the individual market values plus synergies to arrive at the combined company’s market value. Thank you

    August 13, 2017 at 9:24 am #401668
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Because the fact that the question says they will be able to operate at a higher PE will increase the market value (over and above the pure synergy benefits).

    August 13, 2017 at 5:30 pm #401717
    Chidinma
    Member
    • Topics: 10
    • Replies: 16
    • ☆

    Thanks a lot John

    August 14, 2017 at 7:33 am #401745
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Nente Co (June 2012) Continued’ is closed to new replies.

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