Examveda

Under the yield method of valuation of equity share capital, if for an equity share of Rs. 50 the normal rate of return is 10% and expectedrate of return is 5%, then the value of an equity share will be

A. Rs. 25

B. Rs. 40

C. Rs. 50

D. Rs. 100

Answer: Option A


This Question Belongs to Commerce >> Accounting

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Comments (1)

  1. Idas 1011
    Idas 1011:
    3 months ago

    Value =expected rate/normal rate × face value

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