Which of the following represents a stock's fundamental value?

Question

Quizplus · Accepted Answer

The fundamental value of a stock is generally considered to be the present value of its expected future dividend payments. This means that the value of the stock is based on the income it can provide to its shareholders in the form of dividends. Choices A and B are not accurate representations of fundamental value, as they rely on hypothetical scenarios that are unlikely to occur. Choice D is also not accurate, as it assumes that all future dividend payments are equal and can be added together without considering the time value of money.

Which of the Following Represents a Stock's Fundamental Value