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Page no : 6

deepansh chawla (CA FINALIST) (180 Points)
Replied 10 November 2014

What was the answer of ques 6(A) ?



deepansh chawla (CA FINALIST) (180 Points)
Replied 10 November 2014

and the true cost of merger was 40 lacs?


PSPSPS (Practicing) (1344 Points)
Replied 11 November 2014

6a  Part i EPS for Cauliflower Post Merger 5/- .

Total Shares Post Merger 680000 & Earnings 25 + 9 = 3400000. 

Part i 2nd altenative the EPS will be 5.23 , Total Earnings 3400000. but Shares will be 650000. as Exchange is 1 share of Cauliflower for 2 of Cabbage. so Cabbage gets 150000 shares & Shareholding of Cauliflower comes to 5 + 1.50 = 6.50 Lkhs 

3400000 / 650000 = 5.23 R/off. Hence 

Part ii There will be an Adverse Impact on Shareholders of Cabbage in Case 2 Because Shareholders of cabbage Get 150000 Shares & EPS being 5.23 Total = 784500/- Post Merger instead of 900000/- Pre Merger Hence Every Share there is a Negative Impact of 0.77 Paise. However for Shareholders of Cauliflower it will have a Gain of 0.23 Paise. if you cross Check it comes to 

0.23 paise x 500000 shares it will be 115500. ( difference is due to R/off  of 5.23 ) & Total of .77 x 150000 =115500

I hope this Explained Solution has given you the Full Question solved

 

 

1 Like

deepansh chawla (CA FINALIST) (180 Points)
Replied 11 November 2014

Thanks , i got the same . What about 5(A) ?


PSPSPS (Practicing) (1344 Points)
Replied 11 November 2014

Wait for a day or Two I will Solve the Whole Paper & Upload the Scanned Solution Sheet.




PSPSPS (Practicing) (1344 Points)
Replied 11 November 2014

5a Part 1 Dividend Declared Share PRICE WILL BE 156 & New Shares Issued will be 250000/- & Part ii Dividend not Declared Share Price will be 165 & New Shares Issued to 181818 R/off 


deepansh chawla (CA FINALIST) (180 Points)
Replied 11 November 2014

In ques 1(D) , WALTER MODEL DOESNOT USE GROWTH RATE . it uses ROE WHICH IS 10%. 


PSPSPS (Practicing) (1344 Points)
Replied 11 November 2014

Give your Mail ID in my PM Box I will send you the Whole Paper Solved in a Day or 2


JAYANTI MODI (Student CA Final ) (29 Points)
Replied 11 November 2014

It has been decided to introduce a mechanism to obtain the feedback of the candidates who appear in the CA examinations, on the question papers in CA examinations, with effect from May 2014 examinations. Accordingly, a Feedback Form has been designed and hosted in the students>examination section of www.icai.org.

PSPSPS (Practicing) (1344 Points)
Replied 11 November 2014

Dont Give any Feed back to ICAI, Ths is their Game Plan & Trick of deciding on the Vluation Procedures, Which you all have seen & Experienced in May 2014. Pls Spread this Message to all you Friends & in Mass, I am teling this out of the Experience & Information which we have from Institute sources. They are Gathering the sense of the Students by taking Feed Backs to decide on their Valuation Process & Strategy, Else they could have Asked for the Feed Back a Bit later & kept the Window & Last date of submitting the Feed Back till say date of Results or 31st December but See they have kept the cutoff till 28th Nov by when all the Exam Papers will be collected at ICAI & be ready for Distribution to Paper checkers with the Strategy of awarding Marks, & this they will decide based on the sense gathered by them from Feed Backs




PSPSPS (Practicing) (1344 Points)
Replied 18 November 2014

SFM Detailed Solution attached, 

Other papers will be Uploaded very soon in the Next week . All who had given their mail ids were sent the same on mail, which I hope were Recd by them. Now no more mail ids, All solutions will be uploaded here on a Forum, which Pls Check from there. We will have a seperate forum for Solutions of Every Subject


Attached File : 906170 1382356 sfm nov 14 answers.pdf downloaded: 158 times


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