Value of share based on earning basis method is calculated as:

CS Executive · Corporate and Management Accounting · PYQS · December 2020
Value of share based on earning basis method is calculated as:
(A) (Possible rate of dividend/Normal rate of dividend) * Paid up value per share
(B) (Normal rate of dividend/possible rate of dividend) * Paid up value per share
(C) (Normal rate of dividend/dividend per share) * Paid up value per share
(D) None of the above

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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