While determining the normal rate of return for the valuation of shares in Market Value Method, which of the following should be taken into consideration?
A. The degree of risk involved.
B. The current rate of interest on gilt-edged securities.
C. Weighted average cost of capital.
D. All of the above.
Answer:D
While determining the normal rate of return for the valuation of shares in Market Value Method, which of the following should be taken into consideration?
A. The degree of risk involved. B. The current rate of interest on gilt-edged securities. C. Weighted average cost of capital. D. All of the above.