Fundamentals of Financial Management, Third Edition

SOLVED NUMERICAL PROBLEMS

1. The B/S of ABC & Co. as on 31^st March 2007 is as follows:
   

   The re-organisation scheme approved by the court is as follows:

   1. Each share shall be sub-divided into 20 fully-paid equity shares of Rs 5 each.
   2. After sub-division, 95% of the holding will be surrendered by the shareholders.
   3. Of the surrendered shares, 46,000 shares of Rs 5 each are to be converted into 10% participating preference shares of Rs 5 fully-paid.
   4. Debenture-holders’ claim to be reduced to Rs 2,30,000 that will be satisfied by the issue of participating preference shares.
   5. Income tax liability is to be met.
   6. The claims of the unsecured creditors shall ...