Compute the Values of an equity share and of preference share of each of the following companies: (a) When a few shares are sold and (b) When controlling shares are to be sold. Following information is furnished: Company A Company B $ $ Profit after tax 10,00,000 10,00,000 12% Preference Capital (Shares of $ 100 each) 10,00,000 20,00,000 Equity Capital ( Shares of $ 10 each ) 50,00,000 40,00,000 Assume that market expectation is 15% and 80% of profits are distributed.
Compute the Values of an equity share and of preference share of each of the following companies: (a) When a few shares are sold and (b) When controlling shares are to be sold. Following information is furnished: Company A Company B $ $ Profit after tax 10,00,000 10,00,000 12% Preference Capital (Shares of $ 100 each) 10,00,000 20,00,000 Equity Capital ( Shares of $ 10 each ) 50,00,000 40,00,000 Assume that market expectation is 15% and 80% of profits are distributed.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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