Calculate the book value of the share of Company A, which has the following net assets....
Calculate the book value of the share of Company A, which has the following net assets.
| Common Shares (nominal value 20 €) | 10.000.000 |
| Participatory Preference shares (nominal value 25 €) | 5.000.000 |
| Reserve from a share premium issue | 5.000.000 |
| Other Reserves | 10.000.000 |
| Earnings on new | 5.000.000 |
Homework Answers
Common Shares (nominal value 20 €) = 10,000,000
Nominal value per share = € 20
No of shares = Common Share value/Nominal value per share
= € 10,000,000/€ 20 per share
= 500,000 shares
Total equity = Common Shares + Participatory Preferrence Shares + Reserve from a share premium issue + Other reserves + Earnings on new
= 10,000,000 + 5,000,000 + 5,000,000 + 10,000,000 + 5,000,000
= 35,000,000
Book Value of the Company = Total Equity - Participatory Preferrence Shares
= $ 35,000,000 - $5,000,000
= $ 30,000,000
Book Value per share of the company = Book Value of the Company/No of shares
= $30,000,000/500,000
= $ 60 per share
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