Louise Rogers Knows That Several Factors Affect the Price of a Share

question 133

Multiple Choice

Louise Rogers knows that several factors affect the price of a share of common stock.The one that says there is an inverse relationship between interest rates and the value of a share of common stock is the ________ factor.

• A)risk and stock valuation
• B)interest rates and stock valuation
• C)earnings growth and stock valuation
• D)interest rates and risk valuation
• E)interest rates and earnings growth valuation

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Definitions:

Cash Collection

The process of receiving and processing payments from customers, including cash, checks, and credit card payments.

Expense Accounts

Financial accounts used to track money spent or costs incurred in a company's operations.

Credits

Entries in accounting that increase liabilities, revenue, or equity accounts, or decrease asset or expense accounts.

Withdrawals

Money or assets taken out of a business by its owner(s) for personal use.