Hi there I just wanted to know how to get the Fair Value of the 15% investment on 30 June 2020 using the information provided. Im inclined to think I have to use income method for valuation but not too sure how to
Homework Answers
| R | ||||
| Before Tax earning | 84,00,400 | |||
| Add: Insurance payment (12500000/5*1) | 25,00,000 | |||
| Future maintainable earning before tax | 1,09,00,400 | |||
| Tax (28%) | 30,52,112 | |||
| Future maintainable earning after tax | 78,48,288 | |||
| Value of business = Future maintanable earning after tax / (Rate of return - growth) | ||||
| Value of business = 78,48,288 / (20% - 5%) = | 5,23,21,920 | R | ||
| *Rate of return = 16% + 4% = 20% | ||||
| Fair value of 15% Investment on June 30, 2020 : | 78,48,288 | R | ||
| (5,23,21,920 x 15%) | ||||
| Note: While calculate future maintenable earning, if any extraordinary income/(loss) or non | ||||
| recurring nature income, expenses or (loss) shall be adjusted.After that devide the same by cost | ||||
| of capital (after adjusting growth) to compute present value or Fair value of business. | ||||
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Hi there I just wanted to know how to get the Fair Value of the
15%...
I still don't understand how we get 0.7 after adjustment, what is this adjustment, what numbers...
I still don't understand how we get 0.7 after adjustment, what
is this adjustment, what numbers we calculated to get it ? (
clearlyful ...How we get 0.7 ? where'd how exactly it came from
?
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
Prepare the journal entries under both the cost and the equity method of accounting for the investment in Pa Ltd for the year ending 30 June 2020 (that is, two years after acquisition). LO 32.7...
how we get 0.7 after adjustment, what is this adjustment, what numbers we calculated to get...
how we get 0.7 after adjustment, what is this adjustment, what
numbers we calculated to get it ? ( clearlyful ...How we get 0.7 ?
where'd how exactly it came from ?
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
Prepare the journal entries under both the cost and the equity method of accounting for the investment in Pa Ltd for the year ending 30 June 2020 (that is, two years after acquisition). LO 32.7 20. On 1 July...
what numbers we calculated to get these numbers under lined? ( please explain what numbers exactly...
what numbers we calculated to get these numbers under lined? (
please explain what numbers exactly we calculated to get these
numbers ?
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
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Just one question. Is this 20 000 the difference between 100 and 80 ?(red under lined...
Just one question. Is this 20 000 the
difference between 100 and 80 ?(red under lined )
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
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how we get 186000 ( I red underlined it below ) what numbers we calculated to...
how we get 186000 ( I red underlined it below ) what numbers we
calculated to get 186000 ? where and how exactly it
came from ? show me the numbers
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Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
QueSΠΟΗ 12 The following financial statements of Mungo Ltd and its subsidiary Barry Ltd have been extracted from their financial records at 30 June 2019. Mungo Ltd ($000) Barry Ltd ($000) 1 380 (928) 452 1 160 (476) 684 186...
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Just explain the part I added red notice for it, only how to get 390000( please...
Just explain the part I added red notice for it, only how to get
390000( please show me numbers, the calculation, what to add
multiple, dividend to get this result
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
REVIEW QULSIUN TWELVE Zoro Ltd has determined that its China division is a cash-generating unit. The carrying amounts of the assets at 30 June 2014 are as follows: Factory Land Equipment Machinery $210,000 $150,000 $120,000 $60,000 Zoro Ltd calculated the value...
I still don't understand how we get 0.7 after adjustment, what
is this adjustment, what numbers we calculated to get it ? (
clearlyful ...How we get 0.7 ? where'd how exactly it came from
?
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
Prepare the journal entries under both the cost and the equity method of accounting for the investment in Pa Ltd for the year ending 30 June 2020 (that is, two years after acquisition). LO 32.7...
how we get 0.7 after adjustment, what is this adjustment, what
numbers we calculated to get it ? ( clearlyful ...How we get 0.7 ?
where'd how exactly it came from ?
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
Prepare the journal entries under both the cost and the equity method of accounting for the investment in Pa Ltd for the year ending 30 June 2020 (that is, two years after acquisition). LO 32.7 20. On 1 July...
what numbers we calculated to get these numbers under lined? (
please explain what numbers exactly we calculated to get these
numbers ?
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
Adjustments where investor prepares and does not prepare consolidated financial statements Brown Ltd acquired a 30% interest in Bandicoot Ltd for $50 000 cash on 1 July 2018. The directors of Brown Ltd believe this investment represents significant influence over the investee. The equity of Bandicoot Ltd at...
Just one question. Is this 20 000 the
difference between 100 and 80 ?(red under lined )
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
TIPUI LIIC JOUTUI CILICJUULIDUL LIC CUJL UNU LIC Lyuicy TCLOU UN UCC UTILITY IUI LILILIVLJITILIILI TULLU for the year ending 30 June 2020 (that is, two years after acquisition). LO 32.7 20. On 1 July 2018 Stokes Ltd acquires 25 per cent of the issued capital of Cotter Ltd for a cash consideration of...
Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Use the information contained therein and other information provided to answer the questions that follow: Statement of Comprehensive Income for Cash Smart (Pty) Ltd for the year ended 30 June 2020 R'000 95 576 62 000 33 576 6 000 39 576 Sales revenue Cost of sales Gross profit Other operating income Gross operating profit Operating expenses Operating profit Financing costs Profit before taxation Taxation...
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how we get 186000 ( I red underlined it below ) what numbers we
calculated to get 186000 ? where and how exactly it
came from ? show me the numbers
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
QueSΠΟΗ 12 The following financial statements of Mungo Ltd and its subsidiary Barry Ltd have been extracted from their financial records at 30 June 2019. Mungo Ltd ($000) Barry Ltd ($000) 1 380 (928) 452 1 160 (476) 684 186...
Just explain the part I added red notice for it, only how to get
390000( please show me numbers, the calculation, what to add
multiple, dividend to get this result
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
REVIEW QULSIUN TWELVE Zoro Ltd has determined that its China division is a cash-generating unit. The carrying amounts of the assets at 30 June 2014 are as follows: Factory Land Equipment Machinery $210,000 $150,000 $120,000 $60,000 Zoro Ltd calculated the value...
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