MAFA Q2a

Had the swap ratio been followed, then the shares to be issued would be : 1 share of A for every 2 shares of T Total shares in T is 180000 Hence shares of A to be issued to T will be 180000/2 = 90000 shares Am I right?

I agree, You are right! But, I checked with someone at the examination hall and he said, it should be based on Market price of shares of the companies. Which would be 180000 sh of T ltd * 14 (MP of T's share) divided by Rs 30 (sh value of A ltd) i.e. 84000 shares and not 90000 shares. Although I do not agree with this. But, I have a this urge to know the correct answer. Thanks a ton for ur reply. Much appreciated Others, Can you please jump in?