• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Share Price Valuation.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Share Price Valuation.

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 28, 2018 at 11:08 am #486260
    pratim
    Member
    • Topics: 16
    • Replies: 12
    • ☆

    In Kaplan, In One Of The Points They Have Written : Shares Are Fairly Priced – the purchase is a zero NPV transaction. Shares are priced to give investors the exact written to reward them for the level of systematic risk in their shares. As a result the purchase of shares is a zero NPV transaction because the price paid for the share is an accurate reflection of its worth.

    Isn’t This Statement Wrong? This stands true for debtholders. But Shareholders require a premium above their investment. Right?

    November 28, 2018 at 3:52 pm #486303
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    The statement is completely correct.

    The market value of a share is the present value of the future expected dividends discounted at the shareholders required rate of return, and the required rate of return is determined (under CAPM) by the systematic risk of the shares.

    You must watch my free lectures because I explain all of this in the lectures, and you cannot expect me to type them all out here 🙂

    The lectures are a complete free course and cover everything needed to be able to pass the exam well. The only extra book you need (other than our free lecture notes) is a Revision Kit from one of the ACCA approved publishers, because question practice is vital to passing the exam.

    November 29, 2018 at 6:10 am #486358
    pratim
    Member
    • Topics: 16
    • Replies: 12
    • ☆

    Sir, I Have Watched All Your Lectures 🙂 While Revising I Came To This Point.

    Thanks A Lot For Help!

    I Am Really Sorry For Disturbing 🙂

    November 29, 2018 at 8:44 am #486384
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You are welcome, and no problem 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Share Price Valuation.’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • OmarAlbeity on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Salimbek909 on The nature and structure of organisations – ACCA Paper BT

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in