Question

1. Under Net Asset Value method value of shares are depends on
(a) Net asset available to equity shareholders
(b) Net assets available to debenture holders 000.000
(c) Net assets available to preference shareholders
(d) None of the above
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Answer 1

answer : Net asset available to equity shareholders

Explanation:

because I am smart and I saw in books okay but I don't know explanation but it's correct

Answer 2

The value of shares depends on net assets available to equity shareholders.

• The method is also referred to as NAV.
• Both assets and liabilities are taken into consideration under this method.
• They are applied to the total of valuable assets in this form of purchasing consideration, and liabilities are then deducted from the total of assets.
• In any corporation, shareholders may have the ability to vote. They are very crucial in an organisation.
• Thus, the share value is always dependent on the assets held by them.

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