Fair value of shares can be calculated by using the formula:

CS Executive · Corporate and Management Accounting · PYQS · December 2024
Fair value of shares can be calculated by using the formula:
(A) (Value by Net Assets Method + Value by yield Method)/2
(B) (Value by Net Assets Method - Value by yield Method)/2
(C) (Price earnings ratio × Earning per share)
(D) (Total Yield per share/Normal rate of yield) × 100

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Valuation

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