There are three major factors that determine the market value of a company's share of stock. All of the following are factors EXCEPT:
A) Cash flows
B) Sales generated
C) Timing of cash flows
D) Risk taken to generate cash flows

Question

Quizplus · Accepted Answer

The three major factors that determine the market value of a company's share of stock are cash flows, timing of cash flows, and risk taken to generate cash flows. Sales generated could be considered a factor, but it is ultimately tied to cash flows. Therefore, option B is the exception.

There Are Three Major Factors That Determine the Market Value