1

Market price method involves which of the following method?

  • A

    Take the firms worth as the selling price of a similar company which may however not be easy to locate and compare.

  • B

    Divide the market price of the firms shares by the annual earnings per share and multiply this number by the firms average net income called the price-earnings ratio method.

  • C

    Multiply the number of shares outstanding by the market price per share and add a premium, called the outstanding shares method.

  • D

    All of the above