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A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is?
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A Ltd has to redeem 100000value of preference shares at 10% premium.ba...
Calculation of Number of Required Shares
- Redemption of Preference Shares:
A Ltd has to redeem 100000 value of preference shares at 10% premium. This means the total amount to be paid for redemption is 100000 + 10000 (premium) = 110000.
- Available Profit for Dividend:
The balance of available profit for dividend is 20000.
- Amount Required for Redemption:
To calculate the amount required for redemption after using the available profit, we subtract the available profit from the total redemption amount:
110000 - 20000 = 90000.
- Issue of Equity Shares:
The company issues equity shares of 10 each at 10% premium.
- Calculation of Required Shares:
To calculate the number of required shares, we divide the amount required for redemption by the issue price per share:
90000 / 11 = 8181.82.
- Final Number of Required Shares:
Since shares cannot be in decimals, the company would need to issue 8182 shares to raise the required amount for the redemption of preference shares.
Therefore, A Ltd would need to issue 8182 equity shares at 10 each at a 10% premium to redeem 100000 value of preference shares at a 10% premium, using the available profit for dividend.
- Redemption of Preference Shares:
A Ltd has to redeem 100000 value of preference shares at 10% premium. This means the total amount to be paid for redemption is 100000 + 10000 (premium) = 110000.
- Available Profit for Dividend:
The balance of available profit for dividend is 20000.
- Amount Required for Redemption:
To calculate the amount required for redemption after using the available profit, we subtract the available profit from the total redemption amount:
110000 - 20000 = 90000.
- Issue of Equity Shares:
The company issues equity shares of 10 each at 10% premium.
- Calculation of Required Shares:
To calculate the number of required shares, we divide the amount required for redemption by the issue price per share:
90000 / 11 = 8181.82.
- Final Number of Required Shares:
Since shares cannot be in decimals, the company would need to issue 8182 shares to raise the required amount for the redemption of preference shares.
Therefore, A Ltd would need to issue 8182 equity shares at 10 each at a 10% premium to redeem 100000 value of preference shares at a 10% premium, using the available profit for dividend.
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A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is?
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A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is?.
A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd has to redeem 100000value of preference shares at 10% premium.balance of available profit for dividend is 20000. Company issue equity shares of 10 each at 10%premium.no of required shares is?.
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