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Markonis (12/13)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Markonis (12/13)

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
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    Posts
  • 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
    • Replies: 54830
    • ☆☆☆☆☆

    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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