- This topic has 3 replies, 2 voices, and was last updated 13 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
When there is an issue of shares for example in exchange or as a consideration for acquisition of a subsidiary how is the Share capital and share premium values calculated
Number of shares issued x by the nominal value of those shares issued. The share premium is the value placed on those shares less the nominal value.
So, 6million shares of $1 each with a value of $5 each would give rise to an increase in share capital of $6,000,000 and an increase in share premium of 6 million * ($5 – $1 ) = $24,000,000
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.