After reading this article you will learn about the Valuation of Securities:- 1. Debenture Valuation 2. Share Valuation 3. Equity Share Valuation. Debenture Valuation: A bond is an instrument of debt issued by a business house or a government unit. The bonds may be issued at par, premium or discount. The par value is the amount stated on the face [...]
The value of an equity share is a function of cash inflows expected by the investors and the risk associated with the cash inflows. It is calculated by discounting the future stream of dividends at the required rate of return, called the capitalisation rate. The required rate of return depends upon the element of risk associated with investment in shares. [...]
This article throws light upon the top six concepts of value. The concepts are: 1. Book Value 2. Market Value 3. Going Concern Value 4. Liquidation Value 5. Replacement Value 6. True Concept of Value or Intrinsic Value. Concept # 1. Book Value: The book value of assets can be ascertained from the firm's balance sheet which is prepared according [...]