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

Question

3 years ago

9

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?

Engineering

1 answer:

yan [13] · Answer 1 · 2022-05-01T01:46:17+03:00

Answer:

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.