Calculate the post-acquisition increase/decrease price of the share if Tim Limited acquires Polo Limited for R45 million. Assume that Tim Limited has 7 million shares with a market price of R7.00 per share and Polo Limited has 5 million shares with a market price of R5.00 per share. The synergy of this merger is R11 million.
Calculate the post-acquisition increase/decrease price of the share if Tim Limited acquires Polo Limited for R45 million. Assume that Tim Limited has 7 million shares with a market price of R7.00 per share and Polo Limited has 5 million shares with a market price of R5.00 per share. The synergy of this merger is R11 million.
Chapter23: Corporate Restructuring
Section: Chapter Questions
Problem 7P
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Calculate the post-acquisition increase/decrease price of the share if Tim Limited acquires Polo Limited for
R45 million. Assume that Tim Limited has 7 million shares with a market price of R7.00 per share and Polo Limited
has 5 million shares with a market price of R5.00 per share. The synergy of this merger is R11 million.
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