The following particulars are available in respect of Goodluck Limited: ?
(a) Capital 450, 60% preference shares of Rs. 100 each fully paid and 4,500 equity shares of ?Rs.10?each fully paid. ?
(b) External liabilities: ?Rs.7,500.
(c) Reserves and Surplus Rs. 35,000. ?
(d) The average expected profit (after taxation) earned by the company ?Rs. 8,500. ?
(e) The normal profit earned on the market value of equity shares (full paid) of the same type of?companies is 9%.
(f) 10% of the profit after tax is transferred to reserves.
Calculate the intrinsic value per equity share and value per equity share according to dividend?yield basis. ?Calculate also value of share on the basis of ?fair value Method. ? ?
Assume that out of total assets, assets worth of Rs. 350 are fictitious.
