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Amalgamation

372 views 2 replies

Jayesh Rathor

Student

55 Points Joined February 2016

While calculating the intrinsic value of the shares of a company why we include provision for taxation and why we exclude proposed dividend. THANK YOU

Replies (2)

SHINY

CA Final Student

699 Points Joined February 2012

While calculating IV of shares, we deduct Provision for Taxation bcs its a liability (IV=Assets-Liabilities) & deduct Proposed Dividend bcs we normally Find IV(Ex-dividend), so for that we are supposed to deduct proposed dividend.