Example of asset based valuation, Finance Basics

Example of Asset Based Valuation

Extracted information from the books of Kent Limited.


Current liabilities

Bank overdraft







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

                     Stock                  80,000


                    Liabilities             [350,000]


          Value of shares   =        30,000/20,000

                                      =        Sh.1.50

Posted Date: 1/31/2013 2:07:06 AM | Location : United States

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