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Markonis (12/13)

This topic has 2 replies, 2 voices, and was last updated 4 years ago by John Moffat.

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August 16, 2021 at 4:39 pm #631765
rialakhani
Member
- Topics: 20
- Replies: 50
Hi, in this question i have the following doubt,
i solved this question this way- the value of combined company is 2201, then i did (2201 x 100)/310 to find out the share for share exchange and balance using cash, why is this wrong?
August 16, 2021 at 4:59 pm #631769
rialakhani
Member
- Topics: 20
- Replies: 50
is it because the cash reduces the value of combined company thats why we cant follow this approach?
August 17, 2021 at 6:51 am #631799
John Moffat
Keymaster
- Topics: 57
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You would have been given some marks for what you were doing, but the problem is (as you have written) that the cash paid reduces the value.
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