hello sir,
this is regarding chakula co from 21 exam. i was wondering why they divided all values for kawa co by 2000 million shares because those are the total shares of chakula co, not just kawa.
like here,
Value attributable to equity: 75% × $1,882.8m = $1,412.0m
Per share value = $1,412.0m/2,000 million shares = $0.71 per share
Kawa Co original value = $1,200m/2,000 million shares = $0.60 per share
thank you.
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Chakula Co
3y ago#1The total nominal value of Kawa's shares (from their SOFP in the question) is $1,000 million.
The shares have a nominal value of 50c each, and therefore there are 1,000/0.59 = 2,000 million shares.
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