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According to economists, the price of the share is the ___________________________________, or the value of the equity would be the future value of the company.

1 Answer

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Final answer:

The price of the share is determined by the rate of return or interest rate received in financial markets.

Step-by-step explanation:

In the demand and supply analysis of financial markets, the price of the share is the rate of return or the interest rate received. We measure the quantity by the money that flows from those who supply financial capital to those who demand it.

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