Cash flows and risk are the key determinants in share price. Increased cash flow results in ________, other things remaining the same.
A) a lower share price
B) a higher share price
C) an unchanged share price
D) an undetermined share price

Question

Quizplus · Accepted Answer

Increased cash flow typically implies higher profits for the company, which in turn increases the appeal of the stock to investors. This can lead to an increase in demand for the stock, driving up the share price.

Cash Flows and Risk Are the Key Determinants in Share