This chapter discusses the discounted dividend and corporate valuation models for valu-ing common stocks. Three alternative approaches, the P/E multiple, Enterprise Values, and EVA approaches, were presented. Explain each approach and how you might use each one to value a common stock.

how do I compute or calculate valuation and relative value measure to assses stock correctly?  calculation of stock price

Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield   Debt ratio   Current Ratio   Price/Earnings Ratio   Acid-test ratio   Earnings per share     1.  The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.

1. What are the two methods of accounting for share capital? Discuss each briefly. 2. Distinguish share of stock and certificate of stock.    Please answer this 2. Thanks