=1/Alpha AG is wholly owned by Mr Alpha and Beta AG is wholly owned by Mr Beta.

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=1/Alpha AG is wholly owned by Mr Alpha and Beta AG is wholly owned by Mr Beta. The key figures for the two companies are as follows:

Net profit Equity value Book equity Alpha 60 750 800 Beta 30 1500 400 Alpha acquires Beta. Calculate the shareholdings (as a percentage) of Mr Alpha and Mr Beta using net profits, equity value and book equity. What are your conclusions?

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Corporate Finance Theory And Practice

ISBN: 9781118849330

4th Edition

Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi

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