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I’m using the BPP study text, on p.319 there’s a question re cost and indexed costs in share pool where I’m not sure how the cost/indexed figure is arrived, please could you explain?
When there’s a bonus and rights issue involved I understand the cost apportionment and risen indexed figure, however they ask to show its cost/indexed cost after the takeover.
How is the cost/indexed cost calculated once shares are issued in the takeover?
Please refer to the lecture and study notes for Chapter 19 that deal with takeovers