The Value of a Stock Is Based on the

question 7

Multiple Choice

The value of a stock is based on the

• A)present values of the dividend stream and final price.As a result,the value of a stock rises when interest rates rise.
• B)present values of the dividend stream and final price.As a result,the value of a stock falls when interest rates rise.
• C)future values of the dividend stream and final price.As a result,the value of a stock rises when interest rates rises.
• D)future values of the dividend stream and final price.As a result,the value of a stock falls when interest rates rise.

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Definitions:

Reasoning Principle

A fundamental aspect of human thought that involves drawing conclusions or making inferences based on premises.

Pleasure Principle

is a psychoanalytic concept suggesting that people seek pleasure and immediate gratification of needs to avoid pain, guiding the id's desires.

Psychosexual Development

Freud's theory on the stages of psychological development from infancy to adulthood, focusing on how early life sexual urges shape personality.

Oral Trait

A characteristic of personality development associated with the oral stage of psychosexual development, focusing on behaviors related to the mouth such as dependency, eating, and verbal communication.