Model: Value of two classes of shares intrinsic method X Ltd. started its business on 1 April 2007. On 31 March 2010, its balance sheet in a summarized form was as follows:
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
Share Capital: 10,000, 12% Preference
Fixed Costs (Less Depreciation)
Shares of Rs. 100 Each, Fully Paid
2,50,000 Equity Shares of Rs. 10 Each, Fully
Profit Prior to Incorporation
Provision for Income Tax
The company is yet to declare its maiden dividend. A revaluation reveals that the fixed assets as on 31 March 2010 are really worth Rs.30,00,000. Calculate the intrinsic value of two classes of shares.