41. SAYAK Limited acquired a property on 1 January 2010 at a cost of GHC 800,000 , and immediately occupied it as office premises. On acquisition, it was established to have a useful life of 50 years. Subsequent to its acquisition, the asset was measured at depreciated cost until 1 October 2015 when management decided to convert the building into an investment property (mainly for rentals). Following this reason, the property was fair valued at GHC760,000. SAYAK Limited adopts the fair value model for subsequent measurement of the investment property. At 31 December 2015, it was fair valued at GHC780,000. Required: Account for the treatment of the property in the 2015 financial statements of SAYAK Limited. 42. ABC Company is an unquoted enterprise in the brewing industry. The stated Capital of ABC Company consists of 1,000,000 equity shares issued at GH1,000 each. Current dividend (net) is GHs 92 per share net of final dividend tax deduction at source of 8%. Enterprise whose shares are publicly traded and operating in the brewing industry generally have a gross dividend yield of 5%. You are required to place a value on 3% holding of shares in ABC The following is the summarized statement of financial position of ABC ltd as at 31 December 2009 You ascertain that; - Current value of a property (included in the PPE) exceeds book value by GHs 40,000 - Obsolete raw materials included in inventories at GHs4,000andincludedinreceivablesis irrecoverable amount of GHs 6,000 Required: Determine the value of a share using the net asset basis. 43. MSC ACF LTD is planning to obtain a stock market listing by offering 40% of its existing shares to the public. No new shares will be issued. Its most recent summarized results are as follows; The company is lowly geared and has a dividend policy of 50% pay-out rate. And the retention policy is expected to achieve 10% dividend growth each year. Summarized details of two listed companies in the same industry as MSC ACF Ltd are as follows: The current Treasury bill yield is 20% per annum. The average market return is estimated to be 25%. The shares will be offered to the public at a price 15% lower than the estimated market valuation in order to increase the prospects of success for the public issue. Required: What will be the issue price? 44. Share or business valuation is typical of unquoted companies, who may want to value their shares or business for a number of reasons. Identify any five (5) reasons why an unquoted company may want to value its shares or business. 45. BMK Ltd has net tangible assets of GHs48,000 and earnings of GHs16,000. ABS Ltd wants to takeover BMK Ltd and considers that a fair return for this type of industry is 30% and decided to value BMK taking goodwill at 4 years' purchase of super profit. Determine the value of BMK Ltd. 41. SAYAK Limited acquired a property on 1 January 2010 at a cost of GHC 800,000 , and immediately occupied it as office premises. On acquisition, it was established to have a useful life of 50 years. Subsequent to its acquisition, the asset was measured at depreciated cost until 1 October 2015 when management decided to convert the building into an investment property (mainly for rentals). Following this reason, the property was fair valued at GHC760,000. SAYAK Limited adopts the fair value model for subsequent measurement of the investment property. At 31 December 2015, it was fair valued at GHC780,000. Required: Account for the treatment of the property in the 2015 financial statements of SAYAK Limited. 42. ABC Company is an unquoted enterprise in the brewing industry. The stated Capital of ABC Company consists of 1,000,000 equity shares issued at GH1,000 each. Current dividend (net) is GHs 92 per share net of final dividend tax deduction at source of 8%. Enterprise whose shares are publicly traded and operating in the brewing industry generally have a gross dividend yield of 5%. You are required to place a value on 3% holding of shares in ABC The following is the summarized statement of financial position of ABC ltd as at 31 December 2009 You ascertain that; - Current value of a property (included in the PPE) exceeds book value by GHs 40,000 - Obsolete raw materials included in inventories at GHs4,000andincludedinreceivablesis irrecoverable amount of GHs 6,000 Required: Determine the value of a share using the net asset basis. 43. MSC ACF LTD is planning to obtain a stock market listing by offering 40% of its existing shares to the public. No new shares will be issued. Its most recent summarized results are as follows; The company is lowly geared and has a dividend policy of 50% pay-out rate. And the retention policy is expected to achieve 10% dividend growth each year. Summarized details of two listed companies in the same industry as MSC ACF Ltd are as follows: The current Treasury bill yield is 20% per annum. The average market return is estimated to be 25%. The shares will be offered to the public at a price 15% lower than the estimated market valuation in order to increase the prospects of success for the public issue. Required: What will be the issue price? 44. Share or business valuation is typical of unquoted companies, who may want to value their shares or business for a number of reasons. Identify any five (5) reasons why an unquoted company may want to value its shares or business. 45. BMK Ltd has net tangible assets of GHs48,000 and earnings of GHs16,000. ABS Ltd wants to takeover BMK Ltd and considers that a fair return for this type of industry is 30% and decided to value BMK taking goodwill at 4 years' purchase of super profit. Determine the value of BMK Ltd