Question

net tangible asset of firm is 700000
and total Capital is 1300000rs of rs 10
each calculate value of Share.
A
©
5.38
11.22
b) 10.25
d
6.55
(
ام​

Answer 1

Answer:

Option A - 5.38

Explanation:

We have Net tangible asset of firm as Rs 700000

I assumed total capital be equity share capital of Rs10 each - 13,00,000 . hence per share value will be Rs 13,00 , 000 / 10 = Rs 1,30,000

Hence value of share = Total assets / per share value

=>  7,00,000 / 1,30,000

=> Rs 5.3846 is the value per share