Question

Calculate the value of Equity Share by yield method :
1,000, 14% Preference Shares of Rs. 100 each. 20,000 Equity Shares of Rs.
10 each. Annual profit Rs. 1,90,000, Rs. 2,10,000, Rs. 2,05,000 and Rs. 2,15,000
respectively in 2010-11, 2011-12, 2012-13 and 2013-14.
Tax Rate 25%
General Reserve Transfer 20% of Profits
Normal Rate 20%.

Answer 1

Answer:

Calculate the value of Equity Share by yield method :

1,000, 14% Preference Shares of Rs. 100 each. 20,000 Equity Shares of Rs.

10 each. Annual profit Rs. 1,90,000, Rs. 2,10,000, Rs. 2,05,000 and Rs. 2,15,000

respectively in 2010-11, 2011-12, 2012-13 and 2013-14.

Tax Rate 25%

General Reserve Transfer 20% of Profits

Normal Rate 20%.

1

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