Why does the value of a share of stock depend on dividends

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Reference no: EM131683493

The book I am using is: Fundamentals of Corporate Finance (10th ed.). Ross, Westerfield, & Jordan. McGraw-Hill/Irwin.

1. Stock Valuation [ LO1] Why does the value of a share of stock depend on dividends?

2. Stock Valuation [ LO1] A substantial percentage of the companies listed on the NYSE and NASDAQ don't pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given your answer to the previous question?

3. Dividend Policy [ LO1] Referring to the previous questions, under what circum-stances might a company choose not to pay dividends?

 

Reference no: EM131683493

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