The following is an extract from the statement of financial position of Comp plc as at 31.3.X6:
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|
£m
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|
Ordinary shares £1
|
20
|
|
Share premium account
|
5
|
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Accumulated profits
|
12
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5% debentures £1
|
8
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(a) What is the par value of each share?
(b) What is the book value of each share?
(c) What is the interest payable per annum on the debentures?
(d) If the interest rate in the market for debentures similar to those of Comp plc was higher than 5% would the market price of Comp's debentures in the market place be higher or lower than £1?