The following details are obtained from the books of Hendry Itd. As on 30th June 2002 Share capital 100,000 75,000 10,000 equity shares of $ 10 each fully paid up 10,000 equity shares of $ 10 each $7.50 paid up 10,000 equity shares of $ 10 each $5 paid up General reserve 50,000 50,000 Liabilities 125,000 Fixed assets 180,000 220,000 Current assets The normal average profit (less tax) of the company is estimated at $30,000 and the estimated rate for capitalisation purpose is 10, transfer to general reserve 20%. Calculate the value of each type of shares by: 1. Asset backing method (Excluding goodwill) 2. Yield method
The following details are obtained from the books of Hendry Itd. As on 30th June 2002 Share capital 100,000 75,000 10,000 equity shares of $ 10 each fully paid up 10,000 equity shares of $ 10 each $7.50 paid up 10,000 equity shares of $ 10 each $5 paid up General reserve 50,000 50,000 Liabilities 125,000 Fixed assets 180,000 220,000 Current assets The normal average profit (less tax) of the company is estimated at $30,000 and the estimated rate for capitalisation purpose is 10, transfer to general reserve 20%. Calculate the value of each type of shares by: 1. Asset backing method (Excluding goodwill) 2. Yield method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mention the formulas used and steps
Transcribed Image Text:The following details are obtained from the books of Hendry Itd. As on 30th June 2002
Share capital
100,000
75,000
10,000 equity shares of $ 10 each fully paid up
10,000 equity shares of $ 10 each $7.50 paid up
10,000 equity shares of $ 10 each $5 paid up
General reserve
50,000
50,000
Liabilities
125,000
Fixed assets
180,000
220,000
Current assets
The normal average profit (less tax) of the company is estimated at $30,000 and the estimated rate
for capitalisation purpose is 10, transfer to general reserve 20%. Calculate the value of each type of
shares by:
1. Asset backing method (Excluding goodwill)
2. Yield method
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