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

Benefits of payback period, Benefits of Payback Period 1. use simply a...

Benefits of Payback Period 1. use simply and understand and it has created it popular among in ascertaining the viability of venture executives, mainly traditional financial m

FUNCTIONS OF BUDGET, FUNCTIONS OF BUDGET THAT MUST BE PRESENT IN THE MUNICI...

FUNCTIONS OF BUDGET THAT MUST BE PRESENT IN THE MUNICIPAL FINANCIAL MANAGEMENT AND INDICATE HOW THESE FUNCTIONS CAN INFLUENCE MUNICIPAL FINANCIAL MANAGEMENT

Factors to increasing the profitability of a business, Factors contribute t...

Factors contribute to increasing the profitability of a business Several other factors contribute to increasing the profitability of a business. For companies that are highly d

Time value of money, Compute the future value of $2,500 compounded annually...

Compute the future value of $2,500 compounded annually for 10 years at 6%

The return on the preferred stock, BAC is considering an issue of preferred...

BAC is considering an issue of preferred stock.  The dividends are 8.12% of the $25 par value. a.    If the present price is $26.25 per share, what is the return on the preferre

IS LM, After carefully reading all the available information, prepare a two...

After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.

Find the ytm and what is its roe, 1. Find the price of the following bonds....

1. Find the price of the following bonds. They are all risk-free, and the risk-free rate is 10%. (a) A fifteen-year zero coupon bond with face value $1,000. (b) A three year

What is the impact of c on interest rates, Comments : The approved budget f...

Comments : The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, ho

Calculate the expected sale, 1. Suppose company A expects to increase unit ...

1. Suppose company A expects to increase unit sales of i-phone by 15% per year for the next 5 years. If you currently sell 3 million i-phones in one year, how many phones do you ex

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