AM - manageable, PM - madness. Agreed?

CFA Level II
#1

From talking to buddies and other random people after the exam, it seems the general consesus was that the morning paper was ok but the afternoon was just plain hard, and seemed to test more fringe parts of the syllabus. Although one guy I used to go to university with seemed to find the morning incredibly difficult, but the afternoon really easy?!?!? Now, that is madness.

#2

afternoon is impossible Did anyone else have trouble with the stock purchase of the target? I kept getting a negative gain to the target

#3

i think most people thought the PM was difficult and the AM easy. overall last year’s was more difficult

#4

gain to the target was the 105 - the takover premium

#5

last year was twice as hard all around

#6

I have having trouble…when they offer more shares, they diluted it so that the stock price equaled 37, something was off i cant remember

#7

that average ROE got me for a while. realized that you had to divide current earnings with beginning BV then average it out. i kept using the ROE given.

#8

I remember the gain is 105 for target in one question, but another question says synergy is 105, and the answer to that one is 0 gain for acquirer. I also remember the first question for the M&A is 40.4 somthing…

#9

Jscott24 Wrote: ------------------------------------------------------- > I have having trouble…when they offer more > shares, they diluted it so that the stock price > equaled 37, something was off i cant remember add the new shares and then add the value of the Target and Acquired together then divide by new number…I got no gain to the acquirer (combined value divided by new # shares ended up little to no dilution for the Acquirer ), takeover premium to the target.

#10

the management of the acquiring company believes its own shares are overvalued?

#11

I think so, most of acquisition by stock indicates the acquire’s stock is overvalued.

#12

Slash Wrote: ------------------------------------------------------- > the management of the acquiring company believes > its own shares are overvalued? I put they were confident of the synergies

#13

If they were confident of the synergies they would have bought with cash.

#14

Slash Wrote: ------------------------------------------------------- > the management of the acquiring company believes > its own shares are overvalued? Agreed

#15

mto1985 Wrote: ------------------------------------------------------- > Slash Wrote: > -------------------------------------------------- > ----- > > the management of the acquiring company > believes > > its own shares are overvalued? > > > I put they were confident of the synergies they would pay $$ then, I agree with Slash, overvalued

#16

I think the value to the target was 78, not 105.

#17

mto1985 Wrote: ------------------------------------------------------- > Slash Wrote: > -------------------------------------------------- > ----- > > the management of the acquiring company > believes > > its own shares are overvalued? > > > I put they were confident of the synergies if they were confident of the synergies then they wouldn’t give stock. they’d prefer to give cash and reap the benefits of the synergies themselves. the cash deal was worth less than the stock deal, no?

#18

^That’s what I (confidently) put too, don’t remember why though

#19

i thought the value of the target is calculated as MV of the shares they receved of 12 million at 50 a piece - their MV of 15 million shares at 33 a peierce. Thts 600-495?

#20

I think I got 105 too for the gain of target