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In an ideal world, the value placed on a shares value is the current value of all future dividends issues. The greater a firms cash flow, the higher you would expect the dividend to be.
Not living in the real world, and not having a crystal ball, the actual share price is determined more by market sentiment and speculation.
Thus, there is often no real relationship between a firms cash flow, and its stock price.
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∙ 14y ago
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What is Ex-stock price?
Ex-stock price is that price which is immediately deliverable at that price and not price qouted is for stock price of item.
Why are large stock dividends accounted at par value?
ALL _______ Dividends increase the supply of stock, which decreases the price Large stock dividends have a significant effect on the price of stock, so the current market value can NOT be used to value large stock dividends – and the only remaining choice is PAR or STATED VALUE Small stock dividends have only a minor effect on prices, so the current stock price is still used to value the stock dividend Reduction in the price due to an increase in numbers of shares is called “dilution
How can shareholder value be measured for a public company?
It can only be measured by the value of dividends and stock price, or for non-dividend paying companies solely by stock price.
How is a stock price calculated at end of market day?
The most important factor for calculated stock price is earning per share, which indicates how profitable a company is.
What is stock holding policy and how is selling price determined?
No
Stockholder wealth maximization is called?
the appropriate goal for management decisions; considers the risk and timing associated with expected cash flows to maximize the price of the firms common stock
What the meaning of stock price?
A share price is the price of a single share of a company's stock. Once the stock is purchased, the owner becomes a shareholder of the company that issued the share. The price is calculated by dividing the market capitalization by the total number of shares outstanding. When viewed over long periods, the share price is directly related to the earnings and dividends of the firm. Over short periods, especially for younger or smaller firms, the relationship between share price and dividends can be quite irrational.
What factors can managers actually influence that affect stock price?
Managers can influence several items which directly effect stock price. The number of shares which the company decides to float will effect the price of the common stock. In addition, since valuation is determined by the present value of future cash flows, managers may influence the magnitude and timing of those cash flows. Any decision which increases the magnitude of those future cash flows would likely increase the common stock price. Similarly, decisions which delay costs and/or move forward expected cash flows would also likely have a positive effect on the valuation of common equity.
If most investors expect the same cash flows from companies A and B but are more confident that A's cah flows will be closer to their expected value WHICH company should have the higher stock price?
Investors in the company will drive the stock price up for Company A if they are more confident that Company A's cash flow will be closer to their expected value. Company A's stock price will be higher than Company B.
What is the stock price for Johnson and Johnson?
As the current stock price for Johnson and Johnson is always changing see Related Links below for the most recent quote for J&J.
How much is Apple stock?
To view the current price of Apple stock (ticker symbol AAPL) use the related link below.
How much is eBay stock?
To view the current price of eBay stock (ticker symbol EBAY) use the related link below.
How much is Dell stock?
To view the current price of Dell stock (ticker symbol DELL) use the related link below.
How much is Comcast stock?
To view the current price of Comcast stock (ticker symbol CMCSA) use the related link below.
How much is Yahoo stock?
To view the current price of Yahoo stock (ticker symbol YHOO) use the related link below.
What factors leads to zero profits for firms in the long run in a perfectly competitive market?
A perfectly competitive market is a market that is classified by many firms, with homogeneous products, since there are so many firms and consumers (buyers and sellers) each is a price-taker, meaning they have no control over what the price is. firms as a result set price to the marginal cost, which is the marginal revenue which is also the wage.. If there are profits in the short run due to differences in capital, (in the short run, capital stock is fixed), ability of firms to produce at different quantities is apparent. However over the long run, firms are able to make all costs variable, meaning they can change their capital and labor stock in order to become more efficient. These changes result in higher efficiency, and an eventual drop in price where p=mr. There are no profits in long run.
What is Ex-stock price?
Ex-stock price is that price which is immediately deliverable at that price and not price qouted is for stock price of item.
