The value of a share under yield basis is calculated by finding out the capitalization factor. For the computation of the capitalization factor, __________ is used as a base.

CS Executive · Corporate and Management Accounting · PYQS · December 2022
The value of a share under yield basis is calculated by finding out the capitalization factor. For the computation of the capitalization factor, __________ is used as a base.
(A) Normal Rate of Return
(B) Average Rate of Return
(C) Standard Rate of Return
(D) Expected Rate of Return

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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