Fundamental Analysis Determines the Value of a Stock Based on

question 54

Multiple Choice

Fundamental analysis determines the value of a stock based on

• A)dividends.
• B)the expected final sale price.
• C)the ability of the corporation to earn profits.
• D)All of the above are correct.

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Definitions:

Average Total Cost

The cost per unit of output, calculated by dividing the total cost of production by the total number of units produced.

Marginal Revenue

The added revenue procured by vending an additional unit of a good or service.

Business

An organized effort by individuals to produce and sell goods and services for profit.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity produced.