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Social Science Clinic => Business => Finance => Topic started by: lauraleepop on Mar 29, 2022

Title: A company's estimated future earnings and its P/E ratio can be used to estimate the stock's future price.
Post by: lauraleepop on Mar 29, 2022

Question 1

Which of the following will most directly influence a company's market value?
◦ the state of the economy
◦ the book value of its assets
◦ the use of financial leverage
◦ its future cash flows

Question 2

A company's estimated future earnings and its P/E ratio can be used to estimate the stock's future price.
◦ true
◦ false

Title: A company's estimated future earnings and its P/E ratio can be used to estimate the stock's future price.
Post by: Harsh06 on Mar 29, 2022

Answer 1

its future cash flows

Answer 2

true