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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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