From the following data noticed from published financials, ascertain intrinsic value of equity shares: Goodwill ₹56,400 Market value of other assets ₹18,00,000 Debentures ₹10,00,000 Trade payables ₹2,50,000 Preference ca

CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2018
From the following data noticed from published financials, ascertain intrinsic value of equity shares: Goodwill ₹56,400 Market value of other assets ₹18,00,000 Debentures ₹10,00,000 Trade payables ₹2,50,000 Preference capital ₹2,00,000 Equity capital consists of 10000 shares of ₹10 each fully paid up.

Answer & Explanation:

Particulars Amount (₹) Assets Goodwill 56,400 Other assets 18,00,000 Total Assets 18,56,400 Less: Liabilities Debentures 10,00,000 Trade payables 2,50,000 Preference capital 2,00,000 Total Liabilities 14,50,000 Net worth available for equity shareholders 4,06,400 Equity share capital consists of 10,000 shares Hence, intrinsic value per equity share: 4,06,400 / 10,000 = ₹40.64

Topics: Valuation

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