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Question

Which of the following methods provides a better indication about the value of shares?

A
Net Asset method
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B
Yield method
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C
Fair value method
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D
Market value method
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Solution

The correct option is C Fair value method
Fair value is defined as the sale price agreed both by buyer and the seller, assuming that they both enters the transaction freely. It provides the better indication about the value of shares as it takes the market price into consideration.

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