B Com Exam  >  B Com Videos  >  Advanced Corporate Accounting  >  Valuation of Shares - Yield Basis/ Earning Basis/ Market Value Basis

Valuation of Shares - Yield Basis/ Earning Basis/ Market Value Basis Video Lecture | Advanced Corporate Accounting - B Com

89 videos|52 docs|22 tests

FAQs on Valuation of Shares - Yield Basis/ Earning Basis/ Market Value Basis Video Lecture - Advanced Corporate Accounting - B Com

1. What is the Yield Basis valuation of shares?
Ans. Yield Basis valuation of shares is a method that calculates the value of a share based on the expected yield or return that an investor can earn from holding the share. This method takes into consideration the dividends paid by the company and the expected rate of return on the investment.
2. How is Earning Basis valuation of shares determined?
Ans. Earning Basis valuation of shares is calculated by estimating the future earnings of the company and applying a suitable price-to-earnings (P/E) ratio to determine the value of the shares. This method focuses on the company's profitability and growth potential.
3. What is Market Value Basis valuation of shares?
Ans. Market Value Basis valuation of shares is a method that determines the value of shares based on the current market price of the shares. This method considers the supply and demand dynamics in the market and reflects the perceived value of the shares by investors.
4. How can an investor use Yield Basis valuation to make investment decisions?
Ans. An investor can use Yield Basis valuation to compare the expected yield of different investment options and choose the one that offers the best return. By analyzing the dividend yield and expected growth of a company, investors can assess the attractiveness of investing in its shares.
5. What are the advantages of using Earning Basis valuation of shares?
Ans. Earning Basis valuation provides a comprehensive view of a company's financial performance and growth prospects, making it easier for investors to assess the value of its shares. This method also allows for comparisons between different companies in the same industry based on their earnings potential.
89 videos|52 docs|22 tests
Explore Courses for B Com exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

shortcuts and tricks

,

Extra Questions

,

Objective type Questions

,

MCQs

,

video lectures

,

Sample Paper

,

Free

,

Exam

,

Valuation of Shares - Yield Basis/ Earning Basis/ Market Value Basis Video Lecture | Advanced Corporate Accounting - B Com

,

ppt

,

Viva Questions

,

pdf

,

Valuation of Shares - Yield Basis/ Earning Basis/ Market Value Basis Video Lecture | Advanced Corporate Accounting - B Com

,

Previous Year Questions with Solutions

,

study material

,

Semester Notes

,

Summary

,

mock tests for examination

,

past year papers

,

Important questions

,

practice quizzes

,

Valuation of Shares - Yield Basis/ Earning Basis/ Market Value Basis Video Lecture | Advanced Corporate Accounting - B Com

;