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Exchange ratio: A trading at Rs 200; T at Rs 150; A offers shares such that T shareholder receives shares worth Rs 180 per T share. Implied exchange ratio:
A0.75 A shares per T share
B1.00 A share per T share
C0.90 A shares per T share
D1.20 A shares per T share
Answer & Solution
Correct answer: C. 0.90 A shares per T share
1. Identify what the question asks: this concept maps to exchangeratioex (§4.3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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