Stratospheric Stock Prices Are Justified If

question 72

Multiple Choice

Stratospheric stock prices are justified if

• A)expected cash flows increases sufficiently to justify high prices.
• B)if the rate at which expected cash flows are discounted decreases enough to justify high prices.
• C)the Federal Reserve keeps interest rates high.
• D)All of the above are correct.
• E)Both a and b are correct.

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