Following are the particulars of EFT limited, basing on which compute the value of a share under:
(i) Net Assets Method and
(ii) Yield Method. Equity share capital 100 fully paid ₹ 40, 00,000 9.5% Debentures ₹ 20,00,000 Fixed Assets ₹ 50,00,000 Goodwill ₹ 3,00,000 Trade investments ₹ 5,00,000 Non trade investments ₹ 7,00,000 Current Assets ₹ 6,50,000 Current Liabilities ₹ 4,00,000 Profits after tax for the last three years were ₹ 8, 00,000, ₹ 7, 00,000 and ₹ 6, 00,000
Expected Normal rate of return is 15%.
Answers
Answer:
Following are the particulars of EFT limited, basing on which compute the value of a share under:
(i) Net Assets Method and
(ii) Yield Method. Equity share capital 100 fully paid ₹ 40, 00,000 9.5% Debentures ₹ 20,00,000 Fixed Assets ₹ 50,00,000 Goodwill ₹ 3,00,000 Trade investments ₹ 5,00,000 Non trade investments ₹ 7,00,000 Current Assets ₹ 6,50,000 Current Liabilities ₹ 4,00,000 Profits after tax for the last three years were ₹ 8, 00,000, ₹ 7, 00,000 and ₹ 6, 00,000
Expected Normal rate of return is 15%.
Step-by-step explanation:
Following are the particulars of EFT limited, basing on which compute the value of a share under:
(i) Net Assets Method and
(ii) Yield Method. Equity share capital 100 fully paid ₹ 40, 00,000 9.5% Debentures ₹ 20,00,000 Fixed Assets ₹ 50,00,000 Goodwill ₹ 3,00,000 Trade investments ₹ 5,00,000 Non trade investments ₹ 7,00,000 Current Assets ₹ 6,50,000 Current Liabilities ₹ 4,00,000 Profits after tax for the last three years were ₹ 8, 00,000, ₹ 7, 00,000 and ₹ 6, 00,000
Expected Normal rate of return is 15%.