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Hi sir,
Question on 2013 june hav co:
When calculating the share for share exchange, the question asked for cash offer of 1.33 for each strand co share plus one hav co share for every two strand co shares. Can u explain how to get the answer? When the question ask each co A share for 1 co B share, is it always 1/2 multiply by the no of shares or share price??
The answer: 1.33 + 1*9.24 / 2 = 5.95
I understand 1.33 Is the cash offer, but I dun understand why do we have to multiply 9.24??
Thanks in advance!
It is not always 1/2. Here it is because they are being given 1 hav share for every 2 strand shares.
If the question asked for 3 hav share for 2 strand shares, do we use 3/2 to multiply by the no. Of shares or share price?? But how do we know when should we multiply the no. Of shares or share price?? Because in this question’s share for share exchange, we multiply by 9.24, which is hav’s share price but in sigra co (dec 2012) share for share exchange, we multiply 3/2 by dentro number of shares. I don’t really understand when should we multiply by share price and when should we multiply by share number. Can u explain?
You are trying to calculate the value of the shares they receive for every 1 share they own.
So…..if they were to receive 3 hav shares for every 2 shares, then the value of the hav shares is 3 x 9.24. Since they get this for every 2 strand shares, the amount they are getting per strand share is 3 x 9.24 / 2 (or 3/2 x 9.24 which is exactly the same 🙂 )
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