Fill in the Blank QuestionFill in the blank question.If a company shows it is able to generate future earnings, it will most likely see the price of its stock .

Fill in the Blank QuestionFill in the blank question.The higher the company's expected future earnings, the the stock value.

The market price of common stock is based on investors’ expectations about future earnings. This statement is

Based on normal market reaction, the market price of stock willMultiple Choiceincrease if actual earnings are equal to expected earnings.increase if actual earnings are less than expected earnings.decrease if actual earnings are less than expected earnings.decrease if actual earnings are equal to expected earnings

Fill in the Blank QuestionFill in the blank question.Price-earnings ratio is equal to the price of a share of stock divided by the corporation's per of stock.

Accumulated earnings from the firm's profitable operations that are kept in the business and not paid out to stockholders in distributions of company profits are called earnings.