During valuation of shares of a Company, under Net Asset method, whether Goodwill has to be considered or not? This goodwill is a resultant amount on account of Demerger.
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Valuation of shares under net asset method
Replies (3)
If it is purchsed goodwiil then it should be considered for valuation purpose.
Is prefrence share capital is reduced from net asset in net asset method....?? if Yes.... than why.........??
Yes, preference share capital is deducted from net assets in the net asset method because it is a potential liability for the business.
And for ascertaining the value of a share, it should represent the true "net worth" of the business
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