Multiple Choice
Which of the following is true?
A) The buyer of a firm's stock is purchasing a fractional share in the firm's future net revenues.
B) When investors believe that a business decision by the management of a firm will increase the firm's future earnings, the price of the firm's stock will tend to rise.
C) Changing stock prices provide the board of directors and managers of a firm with a strong incentive to make good decisions and undertake productive projects.
D) All of the above are true.
Correct Answer:
Verified
Correct Answer:
Verified
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