At any given time, the market value of a firm's common stock depends upon:
A) The company's profitability and the growth prospects for the future.
B) The current market interest rates and the conditions in the overall stock market.
C) Both a and b
D) Neither a or b

Question

Quizplus · Accepted Answer

The market value of a firm's common stock is influenced by both the company's profitability and growth prospects (which affect investor expectations) and the current market conditions, including interest rates and the overall stock market environment.

At Any Given Time, the Market Value of a Firm's