The basis for stock value is the:

Question

Quizplus · Accepted Answer

The present value of future cash inflows is the most accurate representation of the value of a stock as it takes into account the time value of money and the expected returns from the company's operations. Forecasted dividends may be a factor in determining the present value of future cash flows, but they alone do not determine the value of a stock. The future value of the stock and annuity of constant future returns are not accurate measures of a stock's value as they do not account for the effects of inflation and changes in the market.

The Basis for Stock Value Is The