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Management · Q904

Financial Management

Graduate and Post Graduate · Management · question 904

Q904

Calculation of formula in common stock valuation does not include

A.
intrinsic value
B.
dividend of stockholder
C.
number of stock issued
Answer
D.
expected growth rate

Answer: Option C

Solution

Answer: Option C
Solution:
Calculation of formula in common stock valuation does not include number of stock issued. Common stock valuation is the process of determining the value of a share of stock in a company. The holder of one share in a company that has one million shares outstanding is actually the owner of one-millionth of the company; the value of that share should represent that percentage of the company's worth.