amalgamation

CA Vijay Jain (Chartered Accountant) (176 Points)

22 July 2010  

Hi There is a question in which capital redemption reserve & dividend equalization reserve is given

it says that the preference share holders are issued 10% new preference shares in such quantity so as to maintain their dividend

the value is as below:

preference share capital - 50000

capital redemtion reserve - 30000

dividend equalization fund - 10000

proposed dividend - 15000

there is also equity share capital of rs 150000 & the value per share is 10

so what will be amount which will be given to preference share holders as per scheme of amalgamation.