One of your friends picks up the Wall Street Journal and starts choking on his decaf skinny mochaccino latte. "Look at this!" he gasps. "Amazon pays no dividends and has a market value of $828 billion. Yet, General Motors pays a dividend of 0.38 dollar per share and a market value of only $54 billion. How can this be?!" Explain to your friend how this is possible.

One of your friends picks up the Wall Street Journal and starts choking on his decaf skinny mochaccino latte. "Look at this!" he gasps. "Amazon pays no dividends and has a market value of $828 billion. Yet, General Motors pays a dividend of 0.38 dollar per share and a market value of only $54 billion. How can this be?!" Explain to your friend how this is possible.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 1MC

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