Example of Asset Based Valuation
Extracted information from the books of Kent Limited.
Stock in trade
Stock has a realizable value of Sh.80, 000 and land Sh.300, 000. This company is supposed to be containing a share capital of ordinary shares20, 000.
Calculate the value of its shares.
i) Assets method
Assets = L and B 300,000
Value of shares = 30,000/20,000