Correct Answer:

$$71\mathrm{.}69$

All of these.

If a company has high growth potential, investors in general can expect to receive higher returns in the future, making the present value of those shares worth more.

If a company has a constant dividend payout $($not growing$),$ these cash flows will be worth less in the future as inflation erodes their value.

Dividends are cash flows back to investors and those shares are worth whatever the expected future dividends can be discounted to$.$

Submit

Correct Answer:

$$71\mathrm{.}69$

All of these.

If a company has high growth potential, investors in general can expect to receive higher returns in the future, making the present value of those shares worth more.

If a company has a constant dividend payout $($not growing$),$ these cash flows will be worth less in the future as inflation erodes their value.

Dividends are cash flows back to investors and those shares are worth whatever the expected future dividends can be discounted to$.$

Submit