According the to the 1961 study by Miller and Modigliani, ___ are the underlying source of value of a share of common stock.

Question

Quizplus · Accepted Answer

Miller and Modigliani's study concluded that the earnings of the company are the underlying source of value of a share of common stock. The study suggested that investors are primarily interested in the company's ability to generate future earnings, which in turn will translate into higher dividends and increased stock prices. The other options listed - dividends, common stock outstanding, and stock warrants - are all related to the characteristics of the stock itself or the company's capital structure, rather than the underlying value of the stock.

According the to the 1961 Study by Miller and Modigliani