Calculate the value to be used for capital gains tax share...

Calculate the value to be used for Capital gains tax. Share matching rules Q12: Jessica currently owns 6,000 Hardman plc shares. Her transactions in these shares have been as follows: 26 June 2023 Bought 10,000 shares for £1.20 each. 16 February 2024 Sold 8,000 shares for a total of £15,000. 10 March 2024 Bought 4,000 shares for £2.00 each. Required: Calculate the net chargeable gain arising in 2023-24 on Jessica's disposal of Hardman plc shares.

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00:01 Hello, in this version to calculate the value of one share of company x we need to follow these steps so step one would be calculate the earning price per share, which is known as eps for each year using the given information so if we talk about 2021 the eps can be calculated by net profit after tax divided by number of shares outstanding so if we substitute the values it will be 12 .32 million divided by 4 million which will be equals to 3 .08 dollars similarly if we calculate for 2022 here the eps will be calculated by eps in 2021 which was 3 .08 dollars multiplied by 1 plus eps growth rate which is given in the question for 2022 as we are calculating the eps for 2022 so let's substitute the values it will be 3 .08 which we have calculated above multiplied by 1 plus 15 percent growth rate which is given in the question so it will be 3 .54 dollars applying the same formula for the consecutive years we will get for 2023 eps will be 3 .54 as we have calculated above for 2022 multiplied by 1 plus 10 percent growth rate of 2023 so it will be 3 .89 similarly for 2024 eps will be eps of the previous year that is 3 .89 as we have calculated here multiplied by 1 plus 6 percent which is given in the question so it will be 4 .12 dollars so here we have calculated eps for each year now for the next step we will calculate the dividend per share for each year so second step dividend per share so for 2021 dividend per share will be eps in 2021 multiplied by dividend per share percent of eps for 2021 so eps in 2021 was 3 .08 multiplied by 20 percent which is given in the question so it will be 0 .62 dollars similarly we will calculate for other years for 2022 dividend per share will be 3 .54 multiplied by 15 percent which will be equals to 0 .53 for 2023 dividend per share will be equals to 3 .89 multiplied by 10 percent which will be equals to 0 .39 for 2024 dps will be equals to 4 .12 multiplied by 6 percent which will be equals to 0 .25 dollars in third step let's calculate the terminal value of the company at the end of 2024 so terminal value will be calculated by earnings of 2024 we have calculated 4 .12 multiplied by value of the company which is 6 so it will be 24 .72 million in fourth step...

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