7

Equity Instruments and Their Valuation

Chapter Query

Business newspapers present details on stock trading activities such as the following information taken from the Economic Timesdated December 5,2002. As an investor, how would you interpret the information? What is the value of such information for an investor holding a share?

Chapter Goal

The valuations of equity instruments are discussed with their interpretation and applicability in the stock market. The most often used methods such as earnings valuation, revenue valuation, cash flow valuation, book valuation, dividend valuation and member valuation are discussed. The valuation ...

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