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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Sigra Co
Dear John,
In (b) part of the question where we have to find the percentage gain of Dentro under cash offer, can you explain the numerical $.50/$4.50 *100% = 11.1%?
The current value of shares in Dentro is $4.50 per share.
The cash offer will give them $5.00 per share, which is a gain of $0.50 per share.
Therefore the shareholder are gaining $0.50 on every $4.50 they are currently worth, which in % terms is 0.50/4.50 = 11.11%
Thankyou John. Got it.
You are welcome 🙂