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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Opac Co Dec 2018
Hi Sir ,
I went through the Acca answers published online but I couldn’t figure out how examiner came out with the answer for question 1 c (ii)
“ estimate the percentage gain in value for each Opao Co share and Tai Co share, under each of the cash,the share-for-share, and the mixed offers;
Could you please explain how to get the share for share gain? I have really no clue how should I start the part.
Thank you
Have you checked the workings given in the appendix?
Currently the two companies are worth, in total, $6,000M.
After combining, the total value becomes $6,720.
Dividing by the number of shares gives the new market value per share, and this is compared to the existing MV per share for each company in order to calculate the % gain.