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I do not understand how they came about with the gain for the share for share exchange
Dentro share percentage gain under share-for-share offer
[($3·644 x 3 – $4·50 x 2)/2]/$4·50 x 100% = 21·5%Are you sure you are asking about December 2013? There was no question with Dentro in it on the December 2013 exam.
Currently each share is has a market value of $4.50.
They get 3 shares for every 2 shares.
The 3 shares are worth 3 x $3.644 The 2 shares are worth 2 x $4.50.
So the gain made on every 2 shares is the difference.The gain per share is this divided by 2.
The percentage gain is the gain per share divided by the current MV.
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