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1- Company A has a pre-acquisition value of 600,000. Company B has a pre-acquisition value of 200,000. Company A acquires Company B in a cash

1- Company A has a pre-acquisition value of €600,000. Company B has a pre-acquisition value of €200,000.


Company A acquires Company B in a cash acquisition with a bid value of €300,000.


The benefits arising from the acquisition are valued at €400,000.


calculate how much of these benefits will remain for Company A shareholders after the cost of the acquisition is deducted?


2- Apollo Plc has 100,000 shares on a stand-alone basis, each with a value of €5. Lunar Plc has 50,000 shares on a stand-alone basis, each with a value of €2.

Apollo decides to acquire Lunar in a cash acquisition. Benefits of €200,000 are expected to arise from the acquisition.

Based on the information above, calculate what will be the post-acquisition value per share of the merged group?

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