the aforesaid figures relate to a company which has rs 10 00 000 on equity shares of 674623

The aforesaid figures relate to a company which has Rs.10,00,000 on equity shares of Rs.100 each and Rs.3,00,000 in 9% preference shares of Rs.100 each. The company has investments worth Rs.2,50,000 (at market value) on the valuation date the yield in respect of which has been excluded in arriving at the adjusted tax profit figures. It is usual for similar type of companies to set aside 25% of the taxed profit for rehabilitation and replacement purposes. On the valuation day the net worth (excluding investment) amounts to Rs.22,00,000. The normal rate of return expected is 9%. The company paid dividends consistently within a range of 8 to 10% on equity shares over the previous seven years and the company expects to maintain the same. Compute the value of each equity share on the basis of productivity.