Which of the Following Factors Does NOT Affect the Initial

question 28

Multiple Choice

Which of the following factors does NOT affect the initial market price of a share?

• A) the company's anticipated future earnings
• B) the legal capital of the share
• C) the current state of the economy
• D) the expected dividend rate per share

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Definitions:

Nearest 0.01%

Measurement or calculation precision to the hundredth of a percent.

Equivalent Interest Rate

The interest rate that gives the same compounded financial outcome as other rates calculated over different time periods.

Nearest 0.01%

Rounding off a numerical figure to the closest one hundredth of a percent.

Equivalent Interest Rate

A rate that provides the same accumulated interest as would be obtained from several other interest rates over a given time period.