Question
4 On 1 August 2017 Patronic purchased 18 million of the 24 million GHS1 equity shares of Sardonic. The acquisition was through a share exchange
4 On 1 August 2017 Patronic purchased 18 million of the 24 million GHS1 equity shares of Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. The market price of a share in Patronic at 1 August 2017 was GHS5.75. Patronic will also pay in cash on 31 July 2019 (two years after acquisition) GHS2.42 per acquired share of Sardonic. Patronic's cost of capital is 10% per annum. What is the amount of the consideration attributable to Patronic for the acquisition of Sardonic? A.GHS105 million B.GHS139.5 million C.GHS108.2 million D.GHS103.8 million
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