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    Question

    Company A takes over Company B. Shareholders of B get 3

    shares of A (FV ₹10 each, market value ₹15) for every 2 shares of B (FV ₹10). Company B has 1,00,000 shares. Calculate Purchase Consideration.
    A ₹7,50,000 Correct Answer Incorrect Answer
    B ₹10,00,000 Correct Answer Incorrect Answer
    C ₹15,00,000 Correct Answer Incorrect Answer
    D ₹22,50,000 Correct Answer Incorrect Answer
    E ₹18,00,000 Correct Answer Incorrect Answer

    Solution

    For 2 shares B, 3 shares A. So for 1,00,000 shares, A issues 1,50,000 shares. Value = 1,50,000 × ₹15 = 22,50,000.

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