Temptation Food Products Ltd is an established processed foods company specialising in latest packaged and branded...

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Temptation Food Products Ltd is an established processed foods company specialising in latest packaged and branded foods. The following particulars about its capital structure and other parameters are given to you. Paid up equity share capital(shares of Rs. 10 each) Free Reserves of the company 6% Convertible Preference Shares (Rs. 100 each convertible into two equity shares in the next 2 years) Total Long Term Debt in the company Retained Earnings (excluding current year) Current Year PAT Proposed dividend Trading P/E Amount Rs. 350,000,000 6,800,000,000 850,000,000 6,000,000,000 Rs. 780,000,000 Rs. 225,000,000 From the above given facts of the case, answer the following questions. 209 52 What is the networth of the company considering preference capital and current year retained earnings as part of it? Temptation Food Products Ltd is an established processed foods company specialising in latest packaged and branded foods. The following particulars about its capital structure and other parameters are given to you. Paid up equity share capital(shares of Rs. 10 each) Free Reserves of the company 6% Convertible Preference Shares (Rs. 100 each convertible into two equity shares in the next 2 years) Total Long Term Debt in the company Retained Earnings (excluding current year) Current Year PAT Proposed dividend Trading P/E Amount Rs. 350,000,000 6,800,000,000 850,000,000 6,000,000,000 Rs. 780,000,000 Rs. 225,000,000 From the above given facts of the case, answer the following questions. 209 52 What is the networth of the company considering preference capital and current year retained earnings as part of it?

Answer rating: 100% (QA)

To calculate the net worth of the company we need to consider the equity share capital free reserves ... View the full answer