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All HC posters, please help me with this brain twister:If I rent...

  1. 867 Posts.
    All HC posters, please help me with this brain twister:

    If I rent you my outhouse for $3.5m and throw in the latest edition of Women's Weekly and you pay me with 6m shares in your company, which currently does nothing, if you say the shares are worth $1 each, does that value my outhouse at $6m? Does it value my house at $60m?

    Or could we have contrived the whole deal to get the bank to lend me more money on my house? Or perhaps get someone to buy my house from me at a high price?
 
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