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Author Question: Explain what is meant by the fundamental value of a share of stock. What will be an ideal ... (Read 23 times)

Anajune7

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on: Jun 30, 2018
Explain what is meant by the fundamental value of a share of stock.
 
  What will be an ideal response?

Question 2

Suppose there is an increase in consumer confidence. Which of the following represents the complete list of variables that must increase in response to this increase in consumer confidence?
 
  A) consumption
  B) consumption and investment
  C) consumption, investment and output
  D) consumption and output
  E) consumption, output and the interest rate


sylvia

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The fundamental value of a share of stock is simply the discounted present value of any current and future expected dividends.

Answer to Question 2

E


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