BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market value of shares is influenced by
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financing decision
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investment decision
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dividend decision
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financial decision
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Explanation:
Detailed explanation-1: -Decision on Financing A financial decision includes the amount of money to be raised from various long-term funding sources such as equity shares, preference shares, debentures, bank loans, and so on. This is referred to as a funding decision. In other words, it is a decision on the company’s ‘capital structure.
Detailed explanation-2: -It is essentially the price at which you can purchase or sell any share or bond in the stock market. Stock market value is heavily dependent upon the market demand for such shares, which, in turn, is determined by the overall performance and growth potential of a company.
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