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? Read the following passage and answer the next 4 question (Q27-Q30) Corporate restructuring is an action taken by the corporate entity to modify its capital structure or its operations significantly. Generally, corporate restructuring happens when a corporate entity is experiencing significant problems and is in financial jeopardy. The process of corporate restructuring is considered very important to eliminate all the financial crisis and enhance the company’s performance. The management of the concerned corporate entity facing the financial crunches hires a financial and legal expert for advisory and assistance in the negotiation and the transaction deals. Usually, the concerned entity may look at debt financing, operations reduction, any portion of the company to interested investors. In addition to this, the need for corporate restructuring arises due to the change in the ownership structure of a company. Such change in the ownership structure of the company might be due to the takeover, merger, adverse economic conditions, adverse changes in business such as buyouts, bankruptcy, lack of integration between the divisions, over-employed personnel, etc.Solution
When the acquiring company  (Vinay Ltd) acquires the share of Sagar Ltd, the swap ratio will be used to calculate the exchange rate of shares between both companies. The share swap ratio will be calculated as follows:   = Market price of shares of Sagar Ltd / market price of shares       of  Vinay Ltd (acquiring company)   = 20/100                                         = 1/5 For every 1 share of Vinay Ltd (acquiring company), Sagar Ltd needs to give 5 shares.
Statements:
Only a few Beautiful is Intelligent.
Only a few Smart is Beautiful.
No Smart is Honest.
Conclusion:
I. No...
Statement:
Only a few Banana is Guava.
Some Guava is Leopard.                           Â
Some Leopa...
In each question below are given two statements followed by two conclusions numbered I and II. You have to take the two given statements to be true eve...
Statements : All roses are Daisy.
No Lilly is a rose.
No Daisy is a Tulip.
Conclusions : I . Â No Tulip is a Daisy.
<...Statement:
Some dog are tigers.
Only a few tigers are lions.
All lions are cat.
Conclusion:
I. Some dog being lion is...
In the given question, two conclusions are given and five statements as 1), 2), 3), 4) and 5). You need to choose the option that contains the set of s...
Statements: Some flower are plant.
All plant are trees.
Some trees are not forest.
Conclusions: I. some forest are flower.
...Statements:Â
All P are Q
All Q are R
No Q is a S
Conclusion:
I. Some R are not S.
II. No P is a S
<...Statements:
All Colour is Bulb.
Only a few Colour is Light.
No Light is Wall.
Conclusion:
I....Statement:
Only a few Heel is Sandal
All Sandals are Laces
Only Lace is buckle
Conclusion:
I. Some Heels are Lac...
