When we are calculating val of synergy using DDM model then :
We are considering Bltd data to find the new price of the shares and then deducting it from the old price of the shares and multiplying with the no. of shares of B– then how can we get the val of synergy …we are only considering firm B here not both firm….please explain me the concept
We deduct the value of acquirer (A ltd) from the value of combined firm)