Question

A Company's Share are traded
in the stock market at Rs.44.
Its intrinsic value Rs.36 and
yield value is Rs.8. What is the
Fair Value of the share?​

Answer 1

Answer:

The answer is 22.

Explanation:

Given,

The company share are traded in stock market at Rs. 44

Intrinsic value = Rs. 36

Yield value = Rs. 8

Formula:

$Fair value = \frac{Intrinsic value + Yield value}{2}$

Solution:

$Fair value = \frac{36 +8}{2}$

                 = $\frac{44}{2}$

                 = 22

Answer = The Fair value of the share is 22

#SPJ3