EQUITY SECTION FOR SWIRE PACIFIC LIMITED Share Capital Investment Cash Flow Reve
ID: 2360627 • Letter: E
Question
EQUITY SECTION FOR SWIRE PACIFIC LIMITED
Share Capital Investment Cash Flow
Revenue Premium Redemption Revaluation Hedge
(In millions of HK dollars) Reserve Account Reserve Reserve Reserve
_______________________________________________________________________________________
At 1st January 2007 15,814 342 33 28 --
Profit for the year 4,630
Dividends (4,722)
Repurchase of Company's shares:
Premium paid on repurchase (1,287)
Transferred between reserves (9) 9
Net fair value gains on
available-for-sale investments
recognized during the year ______ ___ __ 17 --
At 31st December 2007 14,426 342 42 45 --
Using the above data, answer the following Questions:
1. As of December 31, 2007 how much of Swire Pacific's equity is distributable?
2. What is the U.S. equivalent of Swire Pacific's revenue reserve?
3. What do you think is the purpose of the capital redemption reserve?
Explanation / Answer
1.As of December 31, 2007 Swire Pacific's equity is distributable: ($14,426+42+45) = $14,513 2.Cash and cash equivalents. 3.The purpose of the reserve is to ensure that the company's capital is not diluted by the redemption of some of the shares.Related Questions
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