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Which of the following would least affect the value of a firm’s stock?        A. amount of cash...

Which of the following would least affect the value of a firm’s stock?        A. amount of cash flows   B. exchange where stock is trades C. timing of cash flows                                            D. risk associated with receiving cash flows

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Answer #1

Ans. Option B. The exchange where stock trades least affects the value of a firm's stock

The other three items are important for the investors to judge the viability and performance of the business and its shares. In fact, cash flows are important not only for operations of the business but they are also used to asses the enterprise value of the business. While the exchange where the share trades can lead to low demand and hence the volume/price of teh shares but it is not a fundamental business issue as compared to the other three and hence the least affecting one!

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