Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Revision
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- June 6, 2015 at 11:35 am #254469
Sir could you explain these ones briefly pleaaaase:
1. In what cases we should value assets by the price of replacing the defective asset?
2. Sir, For example, I have just launched a Company limited by shares. I’m promoter and other people to invest into my company. First question, how I do it? If I am not listed company I can’t advertise my company to the public..
Second question, as far as I know, while issuing shares, for example 1000 shares, I just make up the number and issue? Even the price? But how can I issue shares and make other people buy it if I have only business plan and that’s it:D
Third question, when I’m promoter and want to still hold controlling share of Co, what should I do? Issue 1000 and just keep it unsold or sell 49% and buy 51%. I’m cofused…
Fourth question, what’s the difference when company reinvests all the unpaid dividends In order to make more profit and when company pays out all the dividends and gets this amount back as reinvestment. So, I don’t understand the benefit of paying the dividends instead of reinvesting in itself (or shareholders vote in order to decide could they wait or not?)
Thank you!!!June 6, 2015 at 4:21 pm #2545411 This is not relevant for Paper F3, but is one way of attempting to value a business if you are taking it over
2 Any company can advertise their shares to the public (it happens all the time – especially via various internet websites)
You can’t make other people buy! That is a problem – deciding on an attractive offer price based on the projected returns.
(Again, this is not relevant for F3)3 You need to sell all the shares. If you want to keep control then you need to buy at least 50% of the shares
4 There is no rule about how much dividends to pay or not to pay. Some shareholders will demand dividends (elderly people for example might need the cash are not interested in the company reinvesting.
I am have answered your questions, but they are not relevant to F3.
I cannot act as an advisor!!
June 6, 2015 at 5:44 pm #254576Thank you very much sir!! God bless you!
June 7, 2015 at 7:24 am #254659You are welcome 🙂
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