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Question - Assume a fair interest rate of 12%. On 30 September 2016, Vuka acquired 650 000 of the 1 000 000 issued Class A shares of Aero, a Soweto based gym. In terms of the purchase agreement with the previous shareholders of Aero, Vuka paid R1 800 000 for the shares in Aero on 30 September 2017, interest free.

Do we still need to work out the present value in order to calculate the purchase price, if it states it's interest free?

Reference no: EM132573971

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