ABC Ltd. whose shareholder's equity amounts to ₹ 10,00,000. The company owns 4,000 preferred shares and 1,50,000 common shares. The present market value for the common shares is ₹ 12 per share and ₹ 100 per share for the

CS Executive · Corporate and Management Accounting · PYQS · December 2024
ABC Ltd. whose shareholder's equity amounts to ₹ 10,00,000. The company owns 4,000 preferred shares and 1,50,000 common shares. The present market value for the common shares is ₹ 12 per share and ₹ 100 per share for the preferred stock. Calculate total market value of shares and Market Value Added in ₹.
(A) Total market value of shares 18,00,000 and Market Value Added 10,00,000
(B) Total market value of shares 15,00,000 and Market Value Added 12,00,000
(C) Total market value of shares 22,00,000 and Market Value Added 12,00,000
(D) Total market value of shares 22,00,000 and Market Value Added 10,00,000

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Valuation

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