Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

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

Project Finance Cash Flow Forecasting Financial Reporting Financial Systems Feasibility Studies
user-image
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
Write an Answer
Register now or log in to answer.
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 ----------------------------------------

Write Your Answer
More Questions Like This