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

CS Executive · Corporate and Management Accounting · PYQS · December 2019
Which of the following method of valuation of shares is/are suitable for ascertaining the market value of shares which are quoted on a recognized stock exchange ?
(A) Based on rate of dividend method
(B) Based on rate of earnings method
(C) Based on price earnings ratio method
(D) All the above

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Valuation

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