Model: Value of few shares are to be sold and majority are to be sold From the data given below, you are required to compare the value of each share when (a) only a few shares are to be sold and if (b) majority shares are to be sold:
- Share capital: 10,000 shares of Rs.100 each, fully paid
- Profits after tax and dividends
|
Year |
Profits |
Dividends |
|
2008 |
3,00,000 |
12% |
|
2009 |
4,00,000 |
16% |
|
2010 |
5,00,000 |
20% |
- Normal rate of return 12%