Sunday, December 4, 2011
If investors expect the same cash flow from Companies A and B, ?
If investors expect the same cash flow from Companies A and B, but are more confident that Company A's cash flow will be close to expected value, which would have the higher stock price, and why?|||Cash flows are not the only determinants of the price of the stock. There are many other factors that will influence buyers' in the marketplace. The sales revenues, profits and dividends will affect the share price as will future growth potential of the company. Another important factor is the gearing ratio.
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