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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Opentuition note chapter 16, e.g 2.
Pls John, kindly clear me on this.
Why is it that the cash flows of the combined company were increased by $7?
From where is the $7 coming?
Below the first table it says that there are synergistic benefits of 10 p.a..
With tax of 30%, this means an additional net cash flow of 7 p.a..
Sorry for not making that clear in the answer.
Tnx John. Now well understood.
You are welcome 🙂