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?
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Markonis (12/13)
is it because the cash reduces the value of combined company thats why we cant follow this approach?
5y ago#2You 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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