📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • 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.

      Practice Next
      ask-question