Example of asset based valuation, Finance Basics

Assignment Help:

Example of Asset Based Valuation

Extracted information from the books of Kent Limited.

 

Current liabilities

Bank overdraft

   Sh.

300,000

  50,000

350,000

 

Land

Stock in trade

Sh.

250,000

100,000

350,000

Stock has a realizable value of Sh.80, 000 and land Sh.300, 000.  This company is supposed to be containing a share capital of ordinary shares20, 000.

Calculate the value of its shares.

i)       Assets method

          Assets = L and B            300,000

                     Stock                  80,000

                                                380,000

                    Liabilities             [350,000]

                                                   30,000

          Value of shares   =        30,000/20,000

                                      =        Sh.1.50


Related Discussions:- Example of asset based valuation

Cash cycle and cash turnovers, Cash Cycle and Cash Turnovers Cash Cycl...

Cash Cycle and Cash Turnovers Cash Cycle refers to the amount of time which elapses from the point whenever the firms create a cash outlay to purchase raw materials to the poi

Agency theory, Agency Theory An agency relationship arises whether on...

Agency Theory An agency relationship arises whether one or more parties identified the principal contracts or hires another identified an agent to perform on his behalf some

Homework, the two problems below (P1 and P2). Five marks each. Part marks w...

the two problems below (P1 and P2). Five marks each. Part marks will be allocated, but if you have the incorrect answer then you cannot expect to get more than half marks. Project

I need help with tests, I need help with : an introduction to financial ma...

I need help with : an introduction to financial markets and institutions , 2 edition , brown, nesiba, burton

Assumptions underlying percentage of sales method, Assumptions Underlying P...

Assumptions Underlying Percentage of Sales Method The fundamental supposition underlying the use of % of sales method is such, there is no inflation in the economy such is the

Price earnings ratio, Price Earnings Ratio Price earnings (P/E) or rat...

Price Earnings Ratio Price earnings (P/E) or ratio =  Market price per share (MPS)/Earnings per share                                     OR    = Market value of equity /Ea

Social responsibility - objectives of business entity, Social responsibilit...

Social responsibility - Objectives of Business Entity The firm must decide where to operate strictly in their shareholders' best interests or be responsible to their staff, th

Stock exchange in india, give an introduction about stock exchage in india...

give an introduction about stock exchage in india,,includig BSE

Write Your Message!

Captcha
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