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The Current Price of a Share Is Based

Question 13

Multiple Choice

The current price of a share is based:


A) solely on the anticipated future dividends
B) on the present value of all the future cash flows from that stock
C) strictly on the anticipated future stock price
D) primarily on the future value of the cash flows derived from the stock
E) on the present value of the dividends and the repayment of the principal

Correct Answer:

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