Answered: Why are dividends important in…

Why are dividends important in determining the present value of a share? How would you account for the positive market value of company’s share which currently pays no dividend?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 28DQ

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Why are dividends important in determining the present value of a share? How would you account for the positive market value of company’s share which currently pays no dividend?

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