Hi Friends, When I did question 1i) about the synergy benefit, I have been confused about the formula to calculate synergy. As some previous question I did before, synergy was the difference between value of equity of combined company and separate companies. But in the examiner's answer for Q1i) June 2011, I saw that they used the value of firm, instead of equity. Can anyone here knew the reason? Thanks for your help!
there is bit different way to calculate synergy here, but the basic concept is same. let me go through the again.
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