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Questions and Answers
In valuation of shares, which one of the following is a commonly used method for determining the value of a business?
In valuation of shares, which one of the following is a commonly used method for determining the value of a business?
When valuing tangible assets, which one of the following should be considered?
When valuing tangible assets, which one of the following should be considered?
What is an important consideration when valuing shares of a business?
What is an important consideration when valuing shares of a business?
Study Notes
Valuation of Shares
- A commonly used method for determining the value of a business is the discounted cash flow (DCF) method.
- The DCF method estimates the present value of future cash flows expected to be generated by the business.
Valuing Tangible Assets
- When valuing tangible assets, the cost of replacement or reproduction should be considered.
- This includes the cost of acquiring or replacing the assets with similar ones.
Key Considerations
- An important consideration when valuing shares of a business is the market value of the shares.
- This includes the price at which the shares are currently trading in the market.
- Another key consideration is the earning capacity of the business, which affects the value of the shares.
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Description
Test your knowledge of valuation of shares, business, and tangible assets with this multiple choice quiz. Perfect for CS Executive and CMA exam preparation.
