Exam CIMAPRA19-F03-1 Topic 6 Question 130 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 130
Topic #: 6
Company A is located in Country A, where the currency is the A$.
It is listed on the local stock market which was set up 10 years ago.
It plans a takeover of Company B, which is located in Country B where the currency is the B$, and where the stock market has been operating for over 100 years.
Company A is considering how to finance the acquisition, and how the shareholders of Company B might respond to a share exchange or cash (paid in B$).
Which of the following is likely to explain why the shareholders of Company B would prefer a share exchange as opposed to a cash offer?

Suggested Answer: C Vote an answer

by Regina at Feb 01, 2025, 07:10 PM

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