Lolc=f(loch)
Loch has invested 42105 million in lofc, clc, and nifl
Let’s assume that the number of shares of loch is 1billion
Let’s assume that the total equity is 42105 million
With this the nav of loch is 42.1
Considering the fair value of the investment in lofc, clc, and nifl,
42105 million has become 648,806 million
Therefore, the virtual gain on fair value of the investment is 648,806-42105 million=606701 million
This has caused the nav of loch to increase
The increase in nav is 606.7/1billion= 606.7
Therefore the current nav of loch is
42.1+606.7=648.8
At what price loch shares will be allocated to lolc......
if it is at 648.8 the number of shares that lolc gets will be 42105/648.8
If it is at 42.1, the number of shares that lolc gets will be 42105/42.1=1 billion