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27 September, 03:44

9. A Co has 500,000 total shares outstanding and each share is priced at 20$. B Co has 300,000 total shares outstanding and each share is priced at 40$. You have 100 shares in A Co and 200 shares in B Cos. After consolidation how many new shares you will own in consolidated AB Co?

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  1. 27 September, 03:59
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    In consolidated AB Co 300 shares.

    Explanation:

    Consolidation is a process in which two different organizations are united. In this question A Co and B Co are consolidated and a new Co names AB Co is formed. The shares of both the companies will be combined and their total share capital will be increased.
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