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cash flows

This topic has 4 replies, 2 voices, and was last updated 1 month ago by xyzc.

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January 18, 2023 at 12:09 pm #676890
xyzc
Participant
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20X2 20X1
Ordinary shares of $0.5 each $750 $500
Share premium $350 $100
I calculated the amount of bonus issue to be 50 but in the bpp kit it is given as 100. Which is correct and why
Also I calculated the amount of cash received to be 500 but it is given as 400 in the bpp kit.
January 18, 2023 at 9:27 pm #676957
P2-D2
Keymaster
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How have you calculated it? Without seeing what you have done then it’s difficult to know where you have gone wrong.
January 19, 2023 at 8:26 am #676992
xyzc
Participant
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In the question it is mentioned that a bonus issue of one new share for every ten held was made.
I calculated the amount of bonus issue to be 500/0.5 *1/10*0.5
January 21, 2023 at 5:36 pm #677172
P2-D2
Keymaster
- Topics: 4
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It looks like it should be the 50 that you have calculated. Not sure where their 100 comes from, unless it is just the number of shares issued as part of the bonus issue.
January 28, 2023 at 10:57 am #677522
xyzc
Participant
- Topics: 363
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The following answer is provided:
Issue of shares
share capital and premium b/f (500+100) $600m
Bonus issue (500/0.50 * 1/10) $100m
cash received $400m
share capital premium c/f 1100
Is it incorrect
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