Which of the following methods of valuation of shares is suitable for ascertaining the market value of shares which are quoted in a recognized stock exchange ?

CS Executive · Corporate and Management Accounting · PYQS · June 2022
Which of the following methods of valuation of shares is suitable for ascertaining the market value of shares which are quoted in a recognized stock exchange ?
(A) Based on rate of earnings method
(B) Based on rate of dividend method
(C) Based on price earning ratio method
(D) Based on price dividend ratio method

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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