How much cash will be repaid on each preference share

Assignment Help Financial Accounting
Reference no: EM133071635

Question - Dumler Limited has total assets of £18,000,000 and total liabilities of £11,500,000 when the company goes into liquidation. The issued share capital of the company is as follows:

EQUITY:

Ordinary share capital (5,000,000 shares of £1 each)

Preference share capital (4,000,000 4% shares of 50p each)

Dumler Limited's assets are eventually sold for £12,500,000 and this cash is used to pay off the liabilities in full.

Required -

1. How much cash will be repaid on each preference share?

2. How much cash will be divided between the ordinary shareholders?

Reference no: EM133071635

Questions Cloud

Supply Chain Integration : Amazon is a prime example of a company that has successfully managed its supply chain to achieve growth and profitability.
Cash flows for the proposed project : Suppose Apple corporation is offered an investment which has the following cash flows. Please justify if the project is feasible based on WACC of Apple.
Define The Key Terms-Corporate planning-Strategic planning : Define The Key Terms.Corporate planning, Strategic planning, Tactical planning, Direct exporting, Strategic international
Optimise the investment decision : You work for the world-renowned WIM Consultancy, an affiliate of the recently merged Deloitte McKinsey Investment Bank. Your company has been retained by a very
How much cash will be repaid on each preference share : Dumler Limited's assets are eventually sold for £12,500,000 and this cash is used to pay off the liabilities in full. How much cash will be repaid
Derive the minimum-variance portfolio : Suppose that the market has a risk free asset with return 5 besides n risky assets. Suppose that both lending and borrowing of the risk-free asset are allowed,
Compute the value of Flower Valley Company bonds : The bonds have a par value of $1,000 and will mature 16 years from now. Compute the value of Flower Valley Company bonds
Compute the depreciation for year : The company purchased an office building for P3,000,000 with estimated useful life of 10 years. Compute the depreciation for year
BMO0114 Research Projects Assignment : BMO0114 Research Projects Assignment Help and Solution, University of Huddersfield - Assessment Writing Service

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd