Menu
Dividend decision
A co has outstanding 100000 sh of rs 10 each,currently selling @ 25 each.if the co. buy back 2000 sh at mkt price,then what will be the mkt price after buy back.pls show calculation and also expl logically?
Thanks
Replies (1)
market price after buy back will remain same (assuming other factors constant) .....
=(100000*25) - (2000*25) / 100000-8000
=25
Reason :- Because shares are bought back at market price.......but if shares are bought back at other price than market price then price may have changed.........
Recent Topic
- Provident fund taxation
- ITR3 AY 26-27 Error in filling status
- Queries on TDS as per IT
- Capital Gains set off on Sale of Land if held for
- ITR Form for income from freelance consultancy
- Gst rate for HSN code 28530010
- Health Insurance
- India GST Mobile App
- Reporting STCG on non equity oriented MF
- Section 54F exemption for buying a plot
Related Topics
CAclubindia
