Part (b) was not done well by many candidates. Few candidates could estimate the reduction in value to the equity holders of the acquiring company when the premium paid was increased. A sizable number of candidates who chose question three left part (b) unanswered. It is important that candidates ensure that they can answer all parts of a question before selecting it as one of their options. Again, given that many candidates, who do not achieve a pass, only fail to do so by a few marks; shows how important it is that all parts of a question are attempted properly.