EBK FOUNDATIONS OF FINANCE
EBK FOUNDATIONS OF FINANCE
10th Edition
ISBN: 9780135160473
Author: KEOWN
Publisher: PEARSON CO
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Chapter 13, Problem 5RQ
Summary Introduction

To discuss: Reasons that might be reconsidered by Company A for paying dividends again to its shareholders.

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Alphabet Inc. has never paid a  cash dividend and has no intention of doing so in the foreseeable future. Do a Google search. Why would a company plan to not issue and pay dividends?
You are considering an investment in a new start-up company, Giraffe Inc., an Internet service provider. A review of the company’s financial statements reveals a negative retained earnings. In addition, it appears as though the company has been running a negative cash flow from operating activities since the company’s inception.How is the company staying in business under these circumstances? Could this be a good investment?
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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License