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Example of Asset Based Valuation

Extracted information from the books of Kent Limited.

Current liabilities

Bank overdraft

Sh.

300,000

50,000

350,000

Land

Stock in trade

Sh.

250,000

100,000

350,000

Stock has a realizable value of Sh.80, 000 and land Sh.300, 000. This company is supposed to be containing a share capital of ordinary shares20, 000.

Calculate the value of its shares.

i) Assets method

Assets = L and B 300,000

Stock 80,000

380,000

Liabilities [350,000]

30,000

Value of shares = 30,000/20,000

= Sh.1.50

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9520209

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