11. Crawler Co. issued 200 preference shares (P130 par) and 1,000the P120 fair value of the ordinary shares is determinablethe fair values per share are P150 for the preference shares andP120 for the ordinary shares (proportional method), and (2) onlyordinary shares (P100 par) for P200,000. What amount of sharepremium is attributed to the preference shares assuming (1)the for the ordinary shares (proportional method), and (2) only(incremental method)?Proportionala. 60,000b. 160,000IncrementalProportional Incrementalс. 14,000d. 40,00020,00054,00080,00080,000

When the fair value of one or more of the securities is not known, the incremental method is used…

Answered: ordinary premium is attributed to the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5
Question 3 The table below provides the end-of-year share prices (in GB pence) for Centrica plc and National Express Group plc the end-of-year values for the FTSE 100 Index, which is a proxy for the market portfolio, M. | YEAR Centrica plc National Express Group plc Market Portfolio, M 2002 224.7 292.6 187.4 337.7 465.2 451.7 3940.4 151.5 199.5 2003 4476.9 2004 4814.3 2005 2006 205.8 5618.8 6220.8 6456.9 4434.2 235.5 2007 2008 327.6 293.0 256.1 268.1 545.4 607.1 2009 168.8 5412.9 207.1 243.6 216.1 5899.9 5572.3 5897.8 6749.1 2010 2011 2012 2013 317.8 291.6 348.3 309.6 292.5 204.0 223.5 133.1 206.5 2014 290.9 6566.1 6242.3 7142.8 7687.8 6728.1 7542.4 2015 2016 2017 254.9 301.9 337.8 2018 366.2 2019 136.1 393.9 Source: Yahoo Finance. Required: (a) Calculate the systematic risk (B2 x a, the non-systematic risk (o) – (B? x o2) and the total risk (of) of the equity shares of Centrica and National Express Group. (b) Which company's returns are better explained by the market's returns? (c)…
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ordinary premium is attributed to the preference shares assuming (1) 00. What amount of share par) charo aro B150 C