The major factors that determine the market value of a company's shares of stock include the .
A)risk of its cash flows
B)timing of its cash flows
C)book value of its assets
D)risk of its cash flows and the timing of its cash flows

Question

Quizplus · Accepted Answer

The market value of a company's shares of stock is determined by the risk of its cash flows and the timing of its cash flows. Investors evaluate the risks and timing of a company's future cash flows to determine the potential return on their investment, which ultimately affects the stock price. The book value of its assets may be considered, but it is not the primary determinant of a company's market value.

The Major Factors That Determine the Market Value of a Company's