From the following balance sheet, you are required to value the equity shares:
|
Liabilities |
? |
Assets |
? |
|
5,0006% Prefer- ence Shares of !100 Each |
5,00,000 |
Assets at Book Value |
15,00,000 |
|
15,00,000 |
15,00,000 |
The market value of 50% of the assets is considered at 10% more than the book values and that remaining 50% at 5% less than the book values. There was a liability of Rs.12,500, which remained unrecorded. Assume preference shares have no priority as to the repayment of capital or dividend.