In the long run,the price of a firm's stock is determined by

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In the long run, the price of a firm's stock is determined by the discounted value of the future stream of dividends. This means that the expected dividends that the company will pay to its shareholders in the future are discounted back to the present to determine the current price of the stock. Factors that influence the amount and growth rate of future dividends include the company's profits, cash flow, and potential for growth, among others. Capital gains and taxes may also play a role in stock prices, but the underlying value of a company's future profits and dividends is ultimately what drives the stock price in the long run.

In the Long Run,the Price of a Firm's Stock Is