Question

how do you calculate the value of a firm's shares. please need guide thanks

how do you calculate the value of a firm's shares.
please need guide thanks

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution :- The Value of a firm share is not same as the Book Value of share , we can calculate the Value of firm share that is market price of share

The Value of Firm Share can be Calculated by Dividend discount model :- In this model we can calculate all the future expected dividends and then after calculate the present Value of that dividends . and the sum of the Present Value of all the future dividend is the  value of a firm's share . Apart from this we can also calculate using PE ( Price - Earning ) Ratio . If we know the firm PE ratio and the EPS ( Earning Per share ) of the company , then we can calculate the value of firm share by multiply the PE Ratio and Earning per share .

If there is any doubt please ask in comments

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How do you calculate an equilibrium constant for n-propyl alcohol and acetic acid? I really need...
How do you calculate an equilibrium constant for n-propyl alcohol and acetic acid? I really need the step by step so that I can understand this. Thanks in advance and if you need further information for this please let me know I and I can get it.
What is an annuity? How do you calculate its value? please list a calculate form
What is an annuity? How do you calculate its value? please list a calculate form
Please do not copy and paste from other sources. I need your input on this. Thanks!...
Please do not copy and paste from other sources. I need your input on this. Thanks! Essay prompt: Describe a personal challenge you faced or a situation that you found to be particularly difficult. How did you overcome this obstacle and what did you gain from the experience? (Write at least 400 words)
Question: How do you differentiate sinx/x ? Can you please provide step by step workings ,thanks
Question: How do you differentiate sinx/x ? Can you please provide step by step workings ,thanks
Please do not assume any value Calculate % complete from this data. • The project is...
Please do not assume any value Calculate % complete from this data. • The project is expected to add 6 new features. • The projected cost for the project is $400,000 and my development time is 12 months. • At the end of month 4 we spent $70,000 per feature and completed the development of two new features. • The team is about to start the development of the third new software feature. Requirement:: Calculate the Earned Value from the...
Please just need further analysis, thanks Question: You know that the assets of a firm SKIP...
Please just need further analysis, thanks Question: You know that the assets of a firm SKIP are today worth 100mil. You reasonably feel that in a year they will be either worth 110mil or 90mil. You also know that a treasury bill maturing in one year is offering today a yield of 5%. The firm has a zero-coupon bond that matures in one year and has a face value of 100mil. What should be the value of this corporate bond...
PLEASE ANSWER IN 150-200 WORDS THANK YOU. 1. How can investors guide against an inflationary economy...
PLEASE ANSWER IN 150-200 WORDS THANK YOU. 1. How can investors guide against an inflationary economy that may erode the value of their investments?
How do you calculate the value of any asset?
How do you calculate the value of any asset?
What are Factor Endowments and how do they guide a country's trade practices? How does the...
What are Factor Endowments and how do they guide a country's trade practices? How does the Porter Diamond guide a country's into producing certain products? What conclusions can you derive from Heckscher, Ohlin and Porter and how would you advise a country who has hired you to bring it into the global marketplace?
What is an annuity? How do you calculate its value?
What is an annuity? How do you calculate its value?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT