Question

4. On the basis of the following information, calculate the intrinsic value of an
equity share :
5,000 6% preference shares of 100 each fully paid 5,00,000
30,000 equity shares of R10 each fully paid23,00,000
Total tangible assets (othèsthan goodwill) 39,49,000
Total outside liabilities 95,000
Average net profit after tax 62,560
Expected normal yield for equity shares 7% of capital employed. Goodwill is to
be taken at 5 years purchase of super profits, if any.
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Answer 1

Answer:

Explanation:

Explanation:

One of the main factors behind the rise of Magadhan Control was her economic solvency and growing prosperity. Magadha had a vast population which could be employed in agriculture, mining and for manning her army. The Magadhan lands were very fertile due to its location between the Ganges and the Son.