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Vogel co. june 2014

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Vogel co. june 2014

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • February 21, 2021 at 11:03 am #611176
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir this line is a part of the answer written on Vogel co. :

    “Based on the calculations given above, it is estimated that the value created will be 64.9% or $285.80m”

    sir i think there is some mistake in the calculation done to arrive at 64.9% gain for combination. because the synergy is $285m and pre-acquisition market capitalisation of vogel and tori are $1140m and $207m, respectively. and $285/(1140+207)=21.16% gain on combination.

    What do you think about this sir?

    February 21, 2021 at 1:56 pm #611216
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    I do not know where the 64.9% comes from (and it seems that neither do BPP either – they normally just reprint the examiners answer, but in their Revision Kit has left the 64.9% out of that line).

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