A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?

If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?

A. Rs. 5,400
B. Rs. 5,900
C. Rs. 6,600
D. Rs. 6,802

FV = PV * (1+ i) ^n
= 5,000 (1+0.08) ^4
= 6802

A. Chief Financial Officer
B. Vice President of Operations
C. Chief Executive Officer
D. Board of Directors

Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?

A. Liquidity Ratios
B. Leverage Ratios
C. Profitability Ratios
D. Market Value Ratios

It determines the market price or fair value of the common stock of company and compare it with the items of balance sheet like holder’s equity etc.