Q8.2 In this chapter, we examined nine different share valuation procedures: a. Which one (or more) of

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Q8.2 In this chapter, we examined nine different share valuation procedures:

a. Which one (or more) of these procedures would be most appropriate when trying to put a value on:
i. A growth share that pays little or nothing in dividends?
ii. The ASX top 100?
iii. A relatively new company that has only a brief history of earnings?
iv. A large, mature, dividend-paying company?
v. A preference share that pays a fixed dividend?
vi. A company that has a large amount of depreciation and amortisation?

b. Of the nine procedures listed above, which three do you think are the best? Explain.

c. If you had to choose just one procedure to use in practice, which would it be?
Explain. (Note: Confine your selection to the list above.)

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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