Intrinsic or theoretical value of share of common stock

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Reference no: EM131918434

1. The intrinsic or theoretical value of a share of common stock is based primarily upon the

A. current value of all actual cash flows received.

B. future value of the cash flows expected to be received.

C. historic value resulting from past market prices.

D. present value of the cash flows expected to be received.

2. If the required rate of return (ke) goes up and nothing else changes, the company's stock price (Po) should

A. go up.

B. go down.

C. remain unchanged.

D. need more information

Reference no: EM131918434

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