The value of a common stock today depends on:

Question

Quizplus · Accepted Answer

The value of a common stock is primarily determined by the expected future dividends and the discount rate. The expected future earnings per share can also play a role in determining the stock value, but dividends are the most important factor for long-term investors. The number of authorized shares does not directly impact the value of a stock. Industry analysts may provide insights into the company's future prospects, but their opinions do not necessarily determine the stock's value.

The Value of a Common Stock Today Depends On