Calculation of Sigra Co PE ratio 2
Calculation of Dentro Co share value 2
Calculation of percentage gain under cash offer 1
Total equity value of combined company 1
Estimate of per share value of combined company 1
Calculation of percentage gain under share-for-share offer 1
Estimation of bond required rate of return 2
Estimation of value per share under bond offer 2
Calculation of percentage gain under bond offer 1
Comments (1 mark per relevant point) 3–4

Max marks 16