Calculate share of profit of the members of the parent entity and of minority interests if Alpha Ltd acquired 80% of the shares in X Ltd and 70% of the shares in Y Ltd. The profits recovered by each of the companies of the current year are as follows Net Profit for the current year(m) Alpha Ltd 100 X Ltd 40 Y Ltd -10 A.Profit for members of parent entity is $125m and profit for minority interest is $15m. B. Profit for members of parent entity is $100m and profit for minority interest interest is $30m. C. Profit for members of parent entity is $125m and profit for minority interest is $25m. D. Profit for members of parent entity is $130m and profit for minority interest is $0. E. None of the options provided.
- Calculate share of profit of the members of the parent entity and of minority interests if Alpha Ltd acquired 80% of the shares in X Ltd and 70% of the shares in Y Ltd. The profits recovered by each of the companies of the current year are as follows
Net Profit for the current year(m)
Alpha Ltd 100
X Ltd 40
Y Ltd -10
A.Profit for members of parent entity is $125m and profit for minority interest is $15m.
B. Profit for members of parent entity is $100m and profit for minority interest interest is $30m.
C. Profit for members of parent entity is $125m and profit for minority interest is $25m.
D. Profit for members of parent entity is $130m and profit for minority interest is $0.
E. None of the options provided.
2.The individual discount model is considered amongst analysts as most appropriate for share valuation under which of the following situations:
A.When valuing shares from the perspective of a small shareholder and dividend payout ratio is fairly constant.
B.Under any situation
C.When valuing shares from the perspective of an acquiring company and dividend payout ratio is fairly constant.
D. When valuing shares from the perspective of a small shareholder and dividend payout ratio varies and is unpredictable.
E.None of the options provided.
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