Exam CIMAPRA19-F03-1 Topic 4 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 82
Topic #: 4
Company Z has identified four potential acquisition targets: companies A, B, C and D.
Company Z has a current equity market value of $590 million.
The price it would have to pay for the equity of each company is as follows:

Only one of the target companies can be acquired and the consideration will be paid in cash.
The following estimations of the new combined value of Company Z have been prepared for each acquisition before deduction of the cash consideration:

Ignoring any premium paid on acquisition, which acquisition should the directors pursue?

Suggested Answer: C Vote an answer

by WI041 at Dec 09, 2023, 08:34 AM

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WI041
2023-12-09 08:34:03
Selected Answer: D
Option D (company C) as it gives more consolidated value to the company ? Not sure
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