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Suppose that the market price of Company X is $45 per share and that of Company Y is $30.

If X offers three-fourths a share of common stock for each share of Y, the ratio of exchange of market prices would be:

 

A. 0.667

B. 1.0

C. 1.125

D. 1.5

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/06/09
Upvote (3) Views (10) Followers (5) Answers (3) Report Question
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option C is the right answer.

Ahmer Zamir
by Ahmer Zamir , Consultant , Saleem Associates & Co

The correct option is C)1.125

45*3/4=33.75

33.75/30=1.125

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

A. 0.667 ----------------------------------------

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