Which of the following influences the value of the firm?
A)I only
B)II only
C)Both I and II
D)Neither I nor II

Question

Quizplus · Accepted Answer

Both factors I and II can influence the value of the firm. Factor I, earnings or profits of the firm, is one of the most important determinants of the firm's value. Higher earnings generally indicate a higher value of the firm. Factor II, market sentiment, can also affect the value of the firm. If the market perceives the firm positively, it may lead to a higher value, and vice versa.

Which of the Following Influences the Value of the Firm