Free Cash Flow Part 2

Question 1

What is the order of the cash offer

Answer 1

Gain in value in company share
Addition earnings
Additional eps
Increase in share price
Additional value created
Less paid for acquisition
Value added for shareholders
Gain per share
Percentage gain in value

Question 2

Gain in value company share equation

Answer 2

(Offer value per share - per share value)/ per share value

Question 3

Additional earnings

Answer 3

PAT+ synergies

Question 4

Additional eps

Answer 4

Additional earnings/ big company total shares

Question 5

Increase in share price

Answer 5

Additional eps x number of big company shares

Question 6

Additional value created

Answer 6

Increase in share price x the big company total shares

Question 7

Less paid for acquisition

Answer 7

Offer per share x total shares

Question 8

Value added to shareholders

Answer 8

Additional value created - amount paid

Question 9

Gain in value per share

Answer 9

Value added for shareholders/ total shares of big company

Question 10

Percentage gain in value

Answer 10

Gain in value per share x price of share