When analysts and investors determine the value of a company's shares, they should consider:
A) the size of the expected cash flows associated with owning the shares.
B) the timing of the cash flows.
C) the riskiness of the cash flows.
D) all of the above.

Question

Quizplus · Accepted Answer

When determining the value of a company's shares, analysts and investors should consider all three factors: the size, timing, and riskiness of the expected cash flows associated with owning the shares. This will enable them to make informed decisions about whether the shares are overvalued, undervalued or fairly valued.

When Analysts and Investors Determine the Value of a Company's