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 [...]
A warrant is a long-term security, issued by a company, which provides the holder with the right to buy a fixed number of company's ordinary shares at a fixed price during a specified period of time. Warrants are usually issued in conjunction with a bond or a preferred stock. The primary purpose of a warrant is to increase the marketability [...]