Question

On 1 July 2016, Etsy Ltd acquires all 3,600,000 shares in Facemask Ltd. As part of...

On 1 July 2016, Etsy Ltd acquires all 3,600,000 shares in Facemask Ltd. As part of the purchase consideration, the shareholders of Facemask were offered $2.50 cash for every four Facemask Ltd shares, plus four Etsy Ltd shares for every 9 Facemask Ltd shares. At the date of acquisition, the share price of Facemask Ltd and Etsy Ltd were $24 and $13, respectively.

What is the purchase consideration?

a) 22,300,000
b) 23,050,000
c) 23,800,000
d) 21,800,000

22,300,000

23,050,000

23,800,000

21,800,000

Homework Answers

Answer #1

So, the correct answer is (b). $23,050,000.

Thankyou.........

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