Free Cash Flows Part 3

Question 1

What is the order for a share for share offer

Answer 1

Earnings combined for the company
Shares in combined company
Eps
Expected share price
Gain in value
Total Amount of small company shares
Gain in value to big company

Question 2

Earnings combined for company

Answer 2

Profit after tax + synergies saved + big company profit after tax

Question 3

Shares in combined company

Answer 3

Big company shares + (shares in small company x ratio given)

Question 4

Eps

Answer 4

Earnings combined in company/ total shares in company

Question 5

Expected share price

Answer 5

Eps x P/E level

Question 6

Gain in value

Answer 6

(Expected share price - current big company share price) / current big company share price

Question 7

Small company shares

Answer 7

Per share price x amount to be given

Question 8

Gain in value to nente co share

Answer 8

(Expected share price of big company x amount to be give - small company shares value )/ small company share value