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Selorne Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Selorne Co

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • November 18, 2020 at 5:14 pm #595486
    Avatarmirliz
    Member
    • Topics: 28
    • Replies: 49
    • ☆☆

    Sir, related to this link. https://opentuition.com/topic/valuing-share-of-gain-created-on-acquisiiton-combination/

    For question Selorne Co, whose Point of view we are seeing in the answer given. And whose POV for Makonis?

    November 19, 2020 at 8:04 am #595527
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    In Selorne we are calculating the total gain arising from the merging of the two companies and then calculating how much of the total goes to each group of the original shareholders.

    In Makonis we are calculating the new share price of the enlarged company and comparing it with the Makonis share price before the acquisition.

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