The value of a common stock is based on its:
A) past performance.
B) divided yield.
C) current earnings.
D) future benefits to the holder.

Question

Quizplus · Accepted Answer

The value of a common stock is based on its future benefits to the holder, which include potential capital appreciation and future earnings potential. Past performance, dividend yield, and current earnings can be indicators of future benefits, but they alone do not determine the stock's value.

The Value of a Common Stock Is Based on Its