Which of the following factors does NOT affect the initial market price of a share?
A) the company's anticipated future earnings
B) the legal capital of the share
C) the current state of the economy
D) the expected dividend rate per share

Question

Quizplus · Accepted Answer

The legal capital of a share, which is the minimum amount of capital that must be maintained in the business as per legal requirements, does not directly affect the initial market price of a share. Market prices are influenced by factors like anticipated future earnings, the economy's condition, and expected dividend rates, which reflect the company's profitability and market conditions rather than legal capital requirements.

Which of the Following Factors Does NOT Affect the Initial