The stock market is indeed priced as the present value of expected dividends. Equity premium is mostly due to business cycle risk.
To understand the risk factors that cause the equity premium , we decompose the equity premium into three components, inflation risk business cycle risk & fear based risk premia.
People have different values & preferences that affect their perceptions of risk. Here comes the essential role of cash management.
Failure to achieve this strategic objective can directly impact the efficient commercial operation & ultimately the viability of the organisation.