Question

Shares of Vinay Ltd. And Sagar Ltd. are currently traded at Rs.100 and Rs. 20 respectively. Vinay Ltd is acquiring Sagar Ltd and the market price of both the companies is Rs.100 and Rs.20 respectively. What will be the share swap ratio based on market price?

A 1 share for every 5 share
B 5 hare for every 1 share
C 1 share for every 10 share
D 10 share for every 1 share
E None of the above
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