Amalgamation of companies

Accountancy

What is dividend quantum ? And , how they have computed to give 4000 preference shares at ₹43.75 premium?

Dhivyaa Latha

CA Inter

★ 4K+

18-Mar-23 19:19

452

Answers (4)

Best Answer

Existing dividend is 40000 At 10% to earn 40000 as dividend, you need 400000 facevalue. i.e 4000 shares. Conversion at 15% premium means 575000. So value per share = 575000/4000 = 143.75

CA Suraj Lakhotia

Admin

18-Mar-23 22:50

Dividend quantum means the amt of dividend in total

Angel Maria Varghese

CA Final

★ 9K+

18-Mar-23 22:12

CA Suraj Lakhotia Admin

Existing dividend is 40000 At 10% to earn 40000 as dividend, you need 400000 facevalue. i.e 4000 shares. Conversion at 15% premium means 575000. So value per share = 575000/4000 = 143.75

Thank you Sir

Thread Starter

Dhivyaa Latha

CA Inter

★ 4K+

20-Mar-23 23:10

Angel Maria Varghese

Dividend quantum means the amt of dividend in total

Thank you Angel

Thread Starter

Dhivyaa Latha

CA Inter

★ 4K+

20-Mar-23 23:10