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What is Nominal value of Share?
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Answer / reena
Nominal value of the shares means the face value of the
shares. It is fixed by the Company at the time of issue /
subcription of shares. It is the maximum value which can be
demanded by the Company from the shareholders who subscribe
to the shares.
| Is This Answer Correct ? | 48 Yes | 21 No |
Answer / neha
Under the Companies Act 1985 shares may be issued by the
company to shareholders in return for cash or other value
equal to or greater than its nominal value. Shares in the
authorized share capital are available to be issued. The
issued share capital refers to shares which have been
allotted and issued and held by shareholders. Not all of the
authorised share capital needs to be issued. When shares are
issued the person subscribing must pay cash or equivalent
value of at least the nominal amount. Where the share is
worth more than its nominal amount, a premium may also be paid.
| Is This Answer Correct ? | 41 Yes | 24 No |
Answer / ajay
nominal value of share is also known as face value of
share. It is determined by the company before filing of
prospectus. It is recognised value of a share and which
distinguishes one kind of share to another. It is the value
for which a shareholder is liable. it can be in multiple of
Rs. 1 and can not be in fraction.
| Is This Answer Correct ? | 21 Yes | 12 No |
Answer / sinchana
the value fixed for each share is called it's original or nominal value.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / bhimaray
The nominal value of a share is an arbitrary value allotted to that unit. When considering shares, it is usually the market value and not the nominal or book amount which investors and other stakeholders are interested in
| Is This Answer Correct ? | 2 Yes | 3 No |
Answer / arnab
Nominal Value is the face Value.It is price of 1 share
originally issued by a company.
| Is This Answer Correct ? | 15 Yes | 17 No |
Answer / prashant arjun kole
The stated value of an issued security. Nominal value in
economics also refers to a value expressed in monetary terms
for a specific year or years, without adjusting for
inflation. When used in reference to securities, nominal
value is also known face value or par value.
| Is This Answer Correct ? | 0 Yes | 2 No |
Answer / manas jose
the nominal value of share is the maximum amount at whih
the share can issued.
| Is This Answer Correct ? | 37 Yes | 50 No |
Benjamin O'Henry has owned and operated O'Henry's Data Services since its beginning ten years ago. From all appearances, the business has prospered. In the past few years, you have become friends with O'Henry and his wife. Recently, O'Henry mentioned that he has lost his zest for the business and would consider selling it for the right price. You are interested in buying this business, and you obtain its most recent monthly unadjusted trial balance which follows: O'Henry's Data Services Unadjusted Trial Balance November 30, 20XX Cash……………………………… $9,700 Accounts receivable……………………… 7,900 Prepaid expenses………… 2,600 Furniture, fixtures, & equipment 151,300 Accumulated depreciation $15,600 Accounts payable………… 3,800 Salary payable……………… Unearned service revenue 6,700 Benjamin O'Henry, capital 137,400 Benjamin O'Henry, withdrawals 2,000 Service revenue………… 14,300 Rent expense…………… Salary expense………… 3,400 Utilities expense……… 900 Depreciation expense Supplies expense…… Total…………………………………………. $177,800 $177,800 Revenues and expenses vary little from month to month, and November is a typical month. Your investigation reveals that the unadjusted trial balance does not include the effects of monthly revenues of $2,100 and monthly expenses totaling $2,750. If you were to buy O'Henry's Data Services, you would hire a manager who would require a monthly salary of $3,000. The most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price. The least O'Henry will take for the business is his ending capital. Compute this amount. Under these conditions, how much should you offer O'Henry? Give your reason. I have the mathimatical part ok , please give reasons on how much and why I they would offer him the amount.
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