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Please answer ASAP: The value of common stock today depends on: the expected future holding period...

Please answer ASAP: The value of common stock today depends on:

the expected future holding period and the discount rate.
the expected future dividends and the capital gains.
the expected future dividends, capital gains and the discount rate.
the expected future holding period and capital gains.
None of the above.
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Answer #1

Answer : "the expected future dividends, capital gains and the discount rate."

=> The value of stock today depends on (i) future growth of dividend , (ii) capital gain as per preference of the investors, (iii) The required rate of return (ie. discount rate) expected by the investors in future.

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