How to fair value Preference Shares ( OCPS) ? Which method to adopt. Can I use Net Worth Asset method and does Ind As 113 permits the use of Net Worth / Adjusted Net Asset Method?
6 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 27 December 2021
Total share call money
Less issue costs
Add finance costs
Less coupon
Gives closing non current liability.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 27 December 2021
This for redeemable shares on premium issued at par . What is your type
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 27 December 2021
Now that this part is over, coming to pricing how much a preference share can be issued at is those investment decisions. You have share valuations on my post. But not prefence share. That is due to the amount you need, you have raised that much capital. I'm not working on shares, when I do I'll get back
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 02 January 2022
I found out that preference shares are valued at the face value plus arrear dividend. I have no further clue. Deriving the face value is also not there in MBA which makes things hectic.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 07 January 2022
I found out the value of pref shares in B.com books lol. I am making a share valuation models and will give you the link soon.
The formulae are therefore Preference share value: Po=D/Kp
where:
D = the constant annual preference dividend
Po = ex div MV of the share
Kp = cost of the preference sharES
The fixed dividend is based on the nominal value of the preference share,
which may vary. Do not assume the nominal value is always $1.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 08 January 2022
Hiya, I finished share valuations and u can find them here: https://yasaswigomes.blogspot.com/2022/01/share-valuations-in-nutshell.H T M L
There is no other method published right now in professional resources apart from those
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