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.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter22: Mergers And Corporate Control

Section: Chapter Questions

Problem 5P

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