In the One-Period Valuation Model,a Stock's Value Will Be Higher

question 65

Multiple Choice

In the one-period valuation model,a stock's value will be higher

• A) the higher its expected future price is.
• B) the lower its dividend is.
• C) the higher the required return on investments in equity is.
• D) all of the above.

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Definitions:

Price Index

is a measure that examines the weighted average of prices of a basket of consumer goods and services, used to track inflation or deflation.

GDP

Gross Domestic Product is the sum of the market value of all final goods and services made within a country's borders in a given timeframe.

Gross National Product

The total value of all goods and services produced by a country's residents and businesses, regardless of where the production takes place, over a defined period.

Net Domestic Product

The total value of all goods and services produced within a country in a specific time period, minus depreciation.