Final answer:
The net worth of Agrim Company is Rs. 2,600,000 and the book value per share is Rs. 130.
Step-by-step explanation:
The net worth of a company is the difference between its total assets and total liabilities. To calculate the net worth, we need to determine the total assets and total liabilities of Agrim Company. Given that Agrim Company issued 8,000 shares to the public at a price of Rs. 250 per share, we can calculate the total amount raised from the public as follows: Rs. 250/share x 8,000 shares = Rs. 2,000,000.
Considering that Rs. 150 of each share is a premium, the total premium received would be: Rs. 150/share x 8,000 shares = Rs. 1,200,000. The remaining amount is the face value of the shares, which is: Rs. (250 - 150)/share x 8,000 shares = Rs. 800,000.
The net worth of Agrim Company can then be calculated by summing up the total premium, face value, and retained earnings. Retained earnings are the earnings of the company that have not been distributed as dividends. In this case, retained earnings would be: Rs. 800,000 (earnings) - Rs. 200,000 (dividend) = Rs. 600,000.
Therefore, the net worth of Agrim Company is: Rs. 1,200,000 (premium) + Rs. 800,000 (face value) + Rs. 600,000 (retained earnings) = Rs. 2,600,000.
The book value per share can be calculated by dividing the net worth by the total number of shares. In this case, the total number of shares is 20,000 shares. Therefore, the book value per share is: Rs. 2,600,000 (net worth) / 20,000 shares = Rs. 130.