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Exam F3 All Questions
Exam F3 All Questions

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CIMA Strategic F3 Question # 114 Topic 12 Discussion

F3 Exam Topic 12 Question 114 Discussion:
Question #: 114
Topic #: 12

Company S is planning to acquire Company T.

The shareholders in Company T will receive new shares in Company S in an all-share consideration.

 

Relevant information:

F3 Question 114

 

 

The shareholders in Company T want sufficient shares to receive a 25% premium on the pre-acquisition value of their shares, based on the pre-acquisition share price.

 

Which of the following share-for-share offers will achieve the desired result?


A.

2 shares in Company S for 1 share in Company T


B.

1 share in Company S for 1 share in Company T


C.

1 share in Company S for 2 shares in Company T


D.

10 shares in Company S for 4 shares in Company T


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