Top 50+ Solved Valuation of Shares MCQ Questions Answer
Q. Shares are to be valued on ___________.
a. Mergers
b. Sale of shares
c. Gift tax
d. All of the above
Q. Quoted shares are those shares which are ___________.
a. listed on the stock exchange
b. quoted daily
c. quoted by the seller
d. quoted by the buyer
Q. Under net asset method, value of a share depends on ___________.
a. net assets available to equity shareholders
b. net assets available to debentures holders
c. net assets available to preference shareholders
d. none of the above
Q. Net asset value is also called as ___________.
a. asset backing value
b. intrinsic value
c. liquidation value
d. (a), (b) and (c)
Q. While deciding net asset value, fictitious assets ___________.
a. should be considered
b. should not be considered
c. added to total assets
d. none of the above
Q. Net asset value method is based on the assumption that the company is___________.
a. a going concern
b. going to be liquidated.
c. A & B both
d. none of the above
Q. Yield value depends on ___________.
a. future maintainable profit
b. paid-up equity capital
c. normal rate of return
d. none of the above
Q. F.M.P. for yield valuation is ___________.
a. future profit
b. profit that would be available to equity shareholders
c. past profit
d. none of the above
Q. Fair value of a share is equal to ___________.
a. Intrinsic value only
b. Yield value only
c. Average of intrinsic and yield value
d. None of the above
Q. Value of a partly paid equity share is equal to ___________.
a. Value of fully paid share - calls unpaid per share
b. Calls in arrears per share
c. Paid-up value per share
d. None of the above
Q. ………………………….. value depends on Net assets.
a. Yield value
b. Fair value
c. Intrinsic value
d. none
Q. Fair value is the ……………… of intrinsic value and yield value.
a. Average
b. Total
c. Net
d. Difference
Q. EPS depends on net profit available to………………. Shareholders.
a. Equity
b. Preference
c. Debenture
d. Both A and B