eBay Inc. developed a web-based marketplace at www.ebay.com, in which individuals can buy and sell a variety of items. eBay also acquired PayPal, an online payments system that allows businesses and individuals to send and receive online payments securely. In a recent annual report, eBay published the following dividend policy: We have never paid cash dividends on our stock and currently anticipate that we will continue to retain any future earnings for the foreseeable future.Given eBay’s dividend policy, why would investors be attracted to its stock?
eBay Inc. developed a web-based marketplace at www.ebay.com, in which individuals can buy and sell a variety of items. eBay also acquired PayPal, an online payments system that allows businesses and individuals to send and receive online payments securely. In a recent annual report, eBay published the following dividend policy: We have never paid cash dividends on our stock and currently anticipate that we will continue to retain any future earnings for the foreseeable future.Given eBay’s dividend policy, why would investors be attracted to its stock?
Fundamentals of Financial Management (MindTap Course List)
14th Edition
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter15: Distributions To Shareholders:dividends And Share Repurchases
Section: Chapter Questions
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eBay Inc. developed a web-based marketplace at www.ebay.com, in which individuals can buy and sell a variety of items. eBay also acquired PayPal, an online payments system that allows businesses and individuals to send and receive online payments securely. In a recent annual report, eBay published the following dividend policy: We have never paid cash dividends on our stock and currently anticipate that we will continue to retain any future earnings for the foreseeable future.
Given eBay’s dividend policy, why would investors be attracted to its stock?
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