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Opentuition note chapter 16, e.g 2.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Opentuition note chapter 16, e.g 2.

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
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  • February 26, 2015 at 3:40 pm #230366
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    Member
    • Topics: 11
    • Replies: 33
    • ☆

    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?

    February 26, 2015 at 5:17 pm #230379
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54711
    • ☆☆☆☆☆

    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.

    February 26, 2015 at 6:20 pm #230504
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    Member
    • Topics: 11
    • Replies: 33
    • ☆

    Tnx John. Now well understood.

    February 27, 2015 at 8:58 am #230587
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54711
    • ☆☆☆☆☆

    You are welcome 🙂

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