What is FALSE about the value of the stock?

A) The value of the stock depends on the company’s divident policy B) The value of the stock is the present value of all future cash flows C) There are theoretical and real prices D) The value of the stock is the present value of expected interest payments E) The value of the stock is the discounted dividents

Let us look at all of the above given options

A) The value of the stock depends on the company’s dividend policy : This is true, since we calculate the value of the stock using a Dividend discount model

B) The value of the stock is the present value of all future cash flows : This is true, since we calculate the value of the stock using a discounted cash flow model

C) There are theoretical and real prices :

This is true, since there is a fundamental value of a company and there is a current market price

D) The value of the stock is the present value of expected interest payments : This is false, interest rates do not determine stock price

E) The value of the stock is the discounted dividents : This is true, since we calculate the value of the stock using a Dividend discount model

Hence the correct answer is Option D : The value of the stock is the present value of expected interest payments