Realisation of Assets and Liabilities - Comprehensive
Intrinsic val...
Question
Intrinsic value of a share is given by_________.
A
Total net assets/No of shares
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B
Total assets/No of shares
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C
Share capital/No of shares
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D
Market capitalization/No of shares
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Solution
The correct option is B Total net assets/No of shares To calculate the intrinsic value of a stock, first calculate the growth rate of the dividends by dividing the company's earnings by the dividends it pays to its shareholders.