Which of the Following Factors Does Not Affect the Initial

question 336

Multiple Choice

Which of the following factors does not affect the initial market price of shares?

• A) The company's anticipated future earnings
• B) The par value of the shares
• C) The current state of the economy
• D) The expected dividend rate per share

---

Definitions:

Income Statement

A summary of a company's financial performance over a certain period, detailing revenue, expenses, and profits or losses, revealing the company's ability to generate profit.

Cost-Volume-Profit Analyses

A financial analysis tool that helps determine how changes in cost and volume affect a company's operating profit.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating the contribution towards covering fixed costs and profit.

Sales Volume

The total number of units of product sold in a particular period.