20. NRR stands for ……………………………….

Valuation of Shares MCQ

Valuation of shares is the process of knowing the value of a company’s shares. Share valuation is done based on quantitative techniques and share value will vary depending on the market demand and supply. The share price of the listed companies which are traded publicly can be known easily.

Valuation of Shares MCQ

21. Goodwill is paid for obtaining __________.

22. The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is
10%. Under capitalisation of super profit, goodwill will be ___________.

23. Gross assets are 1,01,000, fictitious assets 350 are included in the gross assets. External liabilities are 7,500. 6% preference share capital is 45,000. Equity capital is 4,500 equity shares of 10 each fully paid. Average expected profit is 8,500. Transfer to reserves is 10% preference dividend is payable. NRR is 9%. The Net Asset Value Per share is ___________.

24. Fair value is not the average of intrinsic value and yield value.

25. In net Assets method all liabilities are consider.