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Question 4 The company ZAG' has decided to acquire the company 'BER. The board of directors of the company ZAG' decided to finance the deal

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Question 4 The company ZAG' has decided to acquire the company 'BER. The board of directors of the company ZAG' decided to finance the deal entirely with the issuance of new equity shares to be offered to the current shareholders of company 'BER. How should the number of new issued shares of company ZAG' be calculated? Explain your answer. [10 marks]

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