gba share price worth more than mmr shareprice, page-12

Denys

I am the man but you are ignoring the man.

I will try again.

For $1, you can buy 5 GBA shares vs 2 MMR shares.

If PEP 11 is successful and its value is say $5 billion, MMR will be worth $10.80 per share [i.e. $5b x 39.2% share of PEP 11 divided by 182m shares on issue].

GBA will be worth $15 per share [i.e. $5b x 9.8% share divided by 32m shares on issue].

For each $1 purchase (5 shares), GBA returns $75.

For each $1 purchase (2 shares), MMR returns $22.

No tax is payable on MMR so the profit per 2 shares is $22.

45% tax (maximum) is payable on GBA so the profit per 5 shares is $75 x 55% = $41.

If GBA shares have been held for more than 12 months, the tax rate is 22.5% and the profit per 5 shares is $58.

To end, although MMR is tax-free, the potential after-tax gain on GBA is twice as much as MMR.

DYOR.