1.. under the net assets method, the value of share depends onthe amount available toa) preference shareholders b) equity shareholdersc) creditors d) debenture holdersun of chare hy intrinsic value method, it is
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Explanation:
Among the various options given in question statement the correct option is the last one, that it the share value depends on the intrinsic value. It is the calculated value of an asset, share or an investment of a company which is used in primary analysis and the options markets. The value of shares is also determined by the profit that is available in the company to be distributed to share holders
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The value of the share depends on b) equity shareholders.
- 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.
- The worth of the corporation's total assets must be calculated first. The assets must then be divided by the total number of shares to get the value of each share to the equity shareholders.
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