Sfm query chop shop approach

CA Final 4580 views 9 replies

prateek

CA Final

355 Points Posted on 18 April 2012

guys the following question ws asked in NOVEMBER 2011 SFM paper........i wanna knw frm which chapter or concept it is related.........

Replies (9)

Joey Tribbiani

fdg

2010 Points Posted on 18 April 2012

valuation of business

prateek

CA Final

355 Points Posted on 19 April 2012

r u sure..............???????

Prathiba vinod

CA FINAL

183 Points Posted on 19 April 2012

its from valuation of business only

Mukesh Kumar Singh

CA-FINAL

4094 Points Posted on 19 April 2012

ya agreed wid all

Guest

ya valuation of business................bt i cant find similar question in any book..........can anybody explain hw this question is to b done...........

Ragini

35 Points Posted on 19 April 2012

Originally posted by : prateek
	guys the following question ws asked in NOVEMBER 2011 SFM paper........i wanna knw frm which chapter or concept it is related.........

Itz one of the study material question...

Solution:

1. Valuation under various Bases

Particulars Wholesale Retail General Total

(a) Segment Sale Based Valuation 1,91,250 8,64,000 20,00,000 30,55,250

(Segment Sales × Capitalisation Rate) (2,25,000 × 0.85) (7,20,000 × 1.2) (25,00,000 × 0.8)

(b) Segment Asset Based Valuation 4,20,000 3,50,000 28,00,000 35,70,000

(Segment Assets × Capitalisation Rate) (6,00,000 × 0.7) (5,00,000 × 0.7) (40,00,000 × 0.7)

(Segment Income × Capitalisation Rate) (75,000 × 9) (1,50,000 × 8) (7,00,000 × 4)

2. Average Capitalisation Based on Book Values of Factors

= (€ 30,55,250 + € 35,70,000 + € 46,75,000) / 3 = € 37,66,750

3. Break Up Value

Break Up Value can be the average of Book Value and Market Value = (€ 37,66,750 + € 40,00,000) ÷ 2 = € 38,83,375

prateek

CA Final

355 Points Posted on 19 April 2012

hahahah.....thnx guys for ur esteemed efforts.....i myself explored the study mat....n finally found the ditto question in the chapter of MERGERS & ACQUISTIONS Page 13.21

but kindly explain d same if u guys hv spare time to take out.....

thnx all