Question

The basis for stock value is the: future value of the stock. present value of future...

The basis for stock value is the:

future value of the stock.

present value of future cash inflows

annuity of constant future returns

forecasted dividends.

The basis for the value of any financial instrument is generally the present value of future cash inflows. Where as in the case of stocks the future cash inflows will be dividends that the stock is going to pay, so the basis for the stock value will be forecasted dividends

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