Amalgamation

While calculating the intrinsic value of the shares of a company why we include provision for taxation and why we exclude proposed dividend. THANK YOU
Replies (2)
While calculating IV of shares, we deduct Provision for Taxation bcs its a liability (IV=Assets-Liabilities) & deduct Proposed Dividend bcs we normally Find IV(Ex-dividend), so for that we are supposed to deduct proposed dividend.

ya exacly as said by shiny...

if v want 2 calculate IV (ex-dividend) then deduct & IV (cum-dividend) then don't deduct

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