sugess me wht v understand if PBRATION OF ANY CO. IS 1
This query is : Resolved
CA Lokesh Pokharna
(Querist)
15 December 2009
wht v meant by if price to book value ratio of any co. is 1 or less than 1.....
in my opinion ...if this co. want go into liquidation in todays date shareholders will get there money with no loss if they buy shres at book value........ assumption --- at time of liquidation all assets of co. realise at book value and all liabilites seettle at book valueee............. m i right???????
in my opinion ...if this co. want go into liquidation in todays date shareholders will get there money with no loss if they buy shres at book value........ assumption --- at time of liquidation all assets of co. realise at book value and all liabilites seettle at book valueee............. m i right???????
15 December 2009
yes.
But your assumption may not be correct. When business is closed; current assets if any; specially debtors are hardly realisable.
Stock shown in books also may not realise the same value.
But your assumption may not be correct. When business is closed; current assets if any; specially debtors are hardly realisable.
Stock shown in books also may not realise the same value.
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