Top 50+ Solved Valuation of Shares MCQ Questions Answer
Q. F.M.P. stands for …………………
a. Firm maintainable profits
b. Future maintainable profits
c. False maintainable profits
d. Foreign maintainable profits.
Q. P/E ratio is a relationship between……………….. and ……………
a. MP/ EPS
b. NP/EPS
c. GP/ EPS
d. LOSS/EPS
Q. Intrinsic Value Method is also called as………………..
a. Yield method
b. Fair value method
c. Asset Backing method
d. none
Q. Yield value is based on the assumption that ……………….
a. Revenue realisation
b. Going concern
c. Prudence
d. Cost concept
Q. NRR stands for ……………………………….
a. Normal rate of return
b. Non resident
c. Natural rate of return
d. Nil rate of return
Q. Goodwill is paid for obtaining __________.
a. Future benefit
b. Present benefit
c. Past benefit
d. None of the above
Q. The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is10%. Under capitalisation of super profit, goodwill will be ___________.
a. 1,20,000
b. 70,000
c. 12,000
d. 24,000
Q. Fair value is not the average of intrinsic value and yield value.
a. True
b. False
c. none
d. none