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If a holding company spins off its subsidiary and then merges it with itself, the share swap is made between: (a) The holding and the subsidiary companies

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If a holding company spins off its subsidiary and then merges it with itself, the share swap is made between:

(a) The holding and the subsidiary companies.

(b) The shareholders of the holding company and the subsidiary company.

(c) The holding company and the shareholders of the subsidiary company.

(d) The shares held in the subsidiary with additional shares in the holding company.

(e) The shares in the holding company are exchanged for shares in the subsidiary company.

 

Q192; In an amalgamation, the share swap ratio is fixed on the basis of:

(a) Book value of assets and liabilities on the date of merger.

(b) DCF valuation of both the companies.

(c) Earnings capitalisation method.

(d) Market Value of the shares of both the companies.

(e) A fair value based on different approaches of valuation.