document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1175357>Question 1175357</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The statement of financial position of A LTD on 31 December 2020 was as follows;<BR>\n" );
document.write( "Statement of Financial Position as at 31/12/2020<BR>\n" );
document.write( "Asset                                                                                     $<BR>\n" );
document.write( "Non current Asset                                                          2 000 000<BR>\n" );
document.write( "Goodwill                                                                           100 000<BR>\n" );
document.write( "Debenture discount                                                             50 000<BR>\n" );
document.write( "Net current asset                                                               400 000<BR>\n" );
document.write( "                                                                                      2 550 000<BR>\n" );
document.write( "Equity/ Liability<BR>\n" );
document.write( "Ordinary share capital                                                     1 500 000<BR>\n" );
document.write( "General reserve                                                                   400 000<BR>\n" );
document.write( "Retained profits                                                                   500 000<BR>\n" );
document.write( "                                                                                          2 400 000<BR>\n" );
document.write( "20% Preference shares       100 000<BR>\n" );
document.write( "30% Debentures                   30 000                                   130 000<BR>\n" );
document.write( "Current liabilities                                                                <BR>\n" );
document.write( "Accounts payable                                                                20 000<BR>\n" );
document.write( "                                                                                        2 550 000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "The net profit of A LTD after tax for the next 4 years was expected to be as follows;<BR>\n" );
document.write( "Year ended<BR>\n" );
document.write( "31/12/21				200 000<BR>\n" );
document.write( "31/12/22				300 000<BR>\n" );
document.write( "31/12/23				350 000<BR>\n" );
document.write( "31/12/24				380 000<BR>\n" );
document.write( "31/12/25				400 000<BR>\n" );
document.write( "A fair rate of return on the business as a whole is estimated to be 20%.<BR>\n" );
document.write( "Required<BR>\n" );
document.write( "Calculate the value of 1 ordinary share on A LTD as at 31 December 2020 using super profits method.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #800960 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52798)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=800960\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "This forum specialization, goal and target is to help school, college and university students in their studies in Math.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "We do not consult in Finance.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Therefore, you spend your time for nothing posting such problems/assignments as this current post.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "You may post your \"THANKS\" to me for my warning, which may save your time in the future.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "I am open to accept your \"THANKS\".\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );