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ii) Over its three year history, the ABC Ltd. has issued common stock on three separate occasions. The company issued 250,000 shares of stock on
ii) Over its three year history, the ABC Ltd. has issued common stock on three separate occasions. The company issued 250,000 shares of stock on April 10, 2001 at an issue price of Rs 6.50 per share. Another 400,000 shares were issued on July 18, 2002 at Rs 8.75 per share. Finally, an additional 350,000 shares were issued on October 24, 2003 at Rs 12.25 per share. All common stock is recorded on the company's balance sheet at a par value of Rs 2.00 per share. ABC Ltd. fiscal year runs from April 1 through March 31 and ABC Lid. reported net profit of Rs 2,420,000 on its 2001-02 income statement, Rs 3,680,000 on its 2002-03 income statememt and Rs 4,840,000 on its 20034 income statement. ABC Ltd. paid dividends of Rs 420,000 in 20012, Rs 680,000 in 20023 and Rs 840,000 in 20034. Using this information, fill in the table below: What entries would be shown under Equity of the company in the Balance Sheet for the Years Ending March 31, 2002, 2003 and 2004. Compute EPS and Return on Equity for the year ended 2002, 2003 and 2004. Would you invest in the share of the company? Justify your answer. ii) Over its three year history, the ABC Ltd. has issued common stock on three separate occasions. The company issued 250,000 shares of stock on April 10, 2001 at an issue price of Rs 6.50 per share. Another 400,000 shares were issued on July 18, 2002 at Rs 8.75 per share. Finally, an additional 350,000 shares were issued on October 24, 2003 at Rs 12.25 per share. All common stock is recorded on the company's balance sheet at a par value of Rs 2.00 per share. ABC Ltd. fiscal year runs from April 1 through March 31 and ABC Lid. reported net profit of Rs 2,420,000 on its 2001-02 income statement, Rs 3,680,000 on its 2002-03 income statememt and Rs 4,840,000 on its 20034 income statement. ABC Ltd. paid dividends of Rs 420,000 in 20012, Rs 680,000 in 20023 and Rs 840,000 in 20034. Using this information, fill in the table below: What entries would be shown under Equity of the company in the Balance Sheet for the Years Ending March 31, 2002, 2003 and 2004. Compute EPS and Return on Equity for the year ended 2002, 2003 and 2004. Would you invest in the share of the company? Justify your
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