Commerce - CBSE UGC NET Previous Years Solved Question with Answers Paper II, June 2013

Question

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?

AThe degree of risk involved.
BThe current rate of interest on gilt-edged securities.
CWeighted average cost of capital.
DAll of the above:

Answer & Explanation

Answer: Option [D]

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