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1 . 2 Calculate the post - acquisition increase / decrease price of the share if Tim Limited acquires Polo Limited for R 4 5

1.2 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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