Question : From the following information, calculate Cash Flow from Financing Activities:
Additional Information: Equity Shares were issued at a premium of 20%. Question: If 12% Preference Shares were redeemed at premium 10%
Option 1: Rs 5,00,000
Option 2: Rs 50,000
Option 3: Rs 5,50,000
Option 4: None of the above
Correct Answer: Rs 5,50,000
Solution : Answer = Rs 5,50,000
RS 5,50,000(5,00,000+50,000 premium on redemption of preference share) Hence, the correct option is 3.
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