Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 14 - The Basic Tools of Finance - Questions For Review - Page 293: 5

Answer

To determine the value of stocks, stock analysts and experts will consider the future expected value of stocks based on strict evaluations. This then in turns sets the basis of a value of a stock.

Work Step by Step

The question is generic and asks you to determine what is the most important factor for stock analysts to consider when deciding to value stocks which will always be profitability.
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