Why is COGS lowered to $17000? If Moon sells the same goods out of Sun&Sons the COGS should be same but SG&A could be lower, because of synergies . That wouldn’t change any of the answers , of course
1.synergy so strategic merger 2.ebit +3m+100k=5.1m 3.24.11%
can someone show the calculation of the discount? thanks.
DLOC = control premium / (1 + control premium) DLOC = .12 / 1.12 = 10.7% Total discount = 1- (1 - DLOC)*(1 - DLOM) = 1 - 0.893*.85 = 24.11% Also, janakisri, i just bunged it into COGS as there was no other suitable place to put it