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

Question

Quizplus · Accepted Answer

The value of a common stock is based on the value of future benefits to the holder, such as potential future dividends and the potential for stock price appreciation. Past performance, historic dividends, and current earnings can provide useful information, but they do not necessarily determine the stock's value.

The Value of a Common Stock Is Based on Its