The firm's stock price is dependent on which of the following factors?

Question

Quizplus · Accepted Answer

The firm's stock price is dependent on all of these factors. Projected earnings per share is an important determinant of the stock price as it reflects the expected profitability of the company. The riskiness of the projected earnings is also important as investors are willing to pay a premium for companies with predictable and stable earnings. Dividend policy also affects the stock price as investors may value a company that pays out dividends more than one that does not. Overall, all of these factors play a role in determining the firm's stock price.

The Firm's Stock Price Is Dependent on Which of the Following