Question

A holds 5,000 shares in M Ltd. The paid up capital

of this company consists of :

(i) 20,000 equity shares of `1 each.

(ii) 10,000, 5% preference shares of `1 each.(the preference shares do not participate further in

profits)

It is ascertained that the normal annual net profit

of such company after tax is `5,000 and the normal

return by way of dividend on the paid up value of

equity share for the company carrying on similar

business is 8%.

Find out the value of equity shares by yield method

for A’s holding.​

Answer 1

Answer:

• nansjsbsbsnsnsnsbsnsnsbsnsnsnssbnzznznsjsndbdbxnsksjdhdnzmaurfbfskowuedndlsow

sjdhsksidhnskdudnaidhxmxlsifbxmzkfjx

Explanation:

nznzjsjsnsnsnsnsnsnsnsñsjnxjdnzxnxndhjaxbfhwkzmfheiskbfeu¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥°°°°°°==={{{={={={={={={={={={={={={={={={=}}}}}}}}}=}=}=}=}=}=}=}=}={¢°¢=€™©™©™€=¢[%]}¢}`•°÷`×¢{¥°¥✓©[%}|×÷¥π|×{¢¥[✓©]¢`×¥÷¥