The distribution of shares in a subsidiary to existing parent company’s stockholder is called ……

Related MCQs

• This strategy enables the existing shareholders of the target company to buy additional shares at a high discount rate.
• National Ltd. Has 12,000 equity shares of Rs.100 each. Sale price is equity share Rs.115 per share; flotation cost Rs.5 per share. Expected dividend growth rate is 5% and expected dividend at the end of the financial year is Rs.11 per share, What is the cost of equity shares of National Ltd?
• The process of converting a subsidiary into an independent entity is called….
• …….. isa type of takeover in which the acquiring company turns itself into a subsidiary of the purchased company.
• …… is the process under which an existing large company purchases the business of another small company doing similar business.
• …... shares are issued free of cost
• A shareholder invests in a Company's Shares mainly------
• …… increases the number of shares without actually increasing the paid - up value of the share capital.
• ….principle says that issue of debt and preference shares do not affect the interest of equity share holders.
• ……. is the ratio in which an acquiring company will offer its own shares in exchange for the target company’s share during merger .