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ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f?
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ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up ...
Explanation of the given scenario:
- Details of ABC Limited: ABC Limited has agreed to issue 3 shares of Rs.10 each (Rs.30) with Rs.9 paid up at market value of Rs.15 per share. This means that the company will receive Rs.45 (3 x Rs.15) for every share issued with Rs.9 paid up.
- Details of Transferor Company: The transferor company has a paid-up share capital of Rs.500,000 with Rs.10 face value per share and Rs.5 paid up. The market value of these shares is Rs.8.
- Rights of Shareholders: For every 5 shares of the transferor company, the shareholders will receive 3 shares of ABC Limited with Rs.9 paid up at market value of Rs.15 per share.
Calculation of the Share Exchange Ratio:
The share exchange ratio can be calculated as follows:
Market value of ABC Limited share with Rs.9 paid up = Rs.15
Market value of transferor company share with Rs.5 paid up = Rs.8
Therefore, the share exchange ratio can be calculated as:
(15-9) / (8-5) = 6/3 = 2/1
This means that for every 2 shares of the transferor company, the shareholders will receive 1 share of ABC Limited with Rs.9 paid up at market value of Rs.15 per share.
Calculation of the Total Value of the Shares:
The total value of the shares can be calculated as follows:
Total number of shares in the transferor company = Rs.500,000 / Rs.10 = 50,000
Total paid-up value of the shares in the transferor company = 50,000 x Rs.5 = Rs.250,000
Total market value of the shares in the transferor company = 50,000 x Rs.8 = Rs.400,000
Therefore, the total value of the shares to be exchanged can be calculated as:
Total value of the shares to be exchanged = (50,000 / 5) x 3 x Rs.15 = Rs.450,000
Conclusion:
In conclusion, the shareholders of the transferor company will receive 3 shares of ABC Limited with Rs.9 paid up at market value of Rs.15 per share for every 5 shares held. The share exchange ratio is 2:1 and the total value of the shares to be exchanged is Rs.450,000.
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ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f?
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ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f?.
ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC limited agrees to issue 3 share of rupees 10 eachrupees 9 paid up at market value of rupees 15 per share for every 5 share in the transferor company has 500000 paid up share capital of rupees 10 each five paid off market value these share rupees is 8 . f?.
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