Model: Intrinsic value—Pref. shareholders not having preference The following is the balance sheet of VRS Ltd. as on 31 March 2010:
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3,000 10% Preference Shares of Z 100
Sundry Assets as
50,000 Equity Shares of Z10 Each
The market value of 70% of the assets is estimated to be 20% more than the book value and that of the remaining 30% at 10% less than the book value. There is an unrecorded liability of Rs.10,000. Find the value of each equity share assuming that preference shares have no prior claim as to payment of dividend or as to payment of capital.