Question

Using a stock valuation formula, you would want to sell a stock you already own if...

Using a stock valuation formula, you would want to sell a stock you already own if ______________.

Group of answer choices

the formula includes the dividend payment

the current stock price exceeds your Willing to Pay

the current stock price is less than your Willing to Pay

the company's dividend payment is reduced

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Homework Answers

Answer #1

Option B is correct.

the current stock price exceeds your Willing to Pay.

If the Stock Price exceeds what you are willing to pay, it means that the stock has become over-valued and overvalued securities are sold while undervalued and failrly securities are bought.

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