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September/December 2015 Question 1 part (b)

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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March 4, 2017 at 3:40 pm #375557
naduni
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In the above question can you please explain how the examiner has obtained the answer as $128m as the value attributable to shareholders before tax savings and redundancy benefits. I mean why has he deducted $37478m from $37350m ?
March 4, 2017 at 6:45 pm #375586
John Moffat
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Because the value is higher than the value of what they are buying – therefore the extra value is the benefit to the shareholders.
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