CA
35 Points
Joined November 2009
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Originally posted by : prateek |
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guys the following question ws asked in NOVEMBER 2011 SFM paper........i wanna knw frm which chapter or concept it is related.........
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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)
(c) Segment Operating Income Based Valuation 6,75,000 12,00,000 28,00,000 46,75,000
(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