The value of common stock today depends on: the expected future holding period and the discount...
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. |
Homework Answers
| The value of common stock today depends on: |
| 3. the expected future dividends, capital gains and the discount rate. |
| ie. Sum of the present values of all the cash flows arising from holding a stock---like dividends & after-tax net sale proceeds(net of acquisition costs)---ie.discounted to the present value at appropriate discount rate , gives the price/value of a stock today. |
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The value of common stock today depends on:
the expected future holding period and the discount...
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9.14
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