2. From the following information, calculate the Fair Value of an Equity Share of UK Ltd:

1. 4,00,000 Equity Shares of 10 each, 8 paid up

2. 7,00,000 Equity Shares of 5 each fully called up (Calls-in-arrears @ 2 on 2,00,000 shares)

3. 10,000 9% Preference Shares of 100 each fully paid up

4. Reserves & Surplus 73,76,000

5. Tangible Fixed Assets 3,00,000. 50% of Total Tangible Fixed Assets are found undervalued by 50% of market value and 50% of the remaining are found overvalued by 50% of market value. 10% Investments: [Face Value 80,000] 1,00,000. Of the Investments 10% is trade and the balance non-trade. All trade Investments are to be valued at 10% below cost.

6. External Liabilities 10,00,000

7. Expected Future Maintainable Profits before tax 25,59,000

8. Rate of Tax30%, (Ignore Corporate Dividend Tax)

9. Normal Rate of Earnings9%