Question

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

   Why does the value of a share of stock depend on dividends?
Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
Stephen A. Ross;… 11th Edition
Chapter 8, Problem 1 ↓

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Dividends are a portion of a company's profits that are distributed to its shareholders. When a company earns profits, it can choose to reinvest them back into the business or distribute them to shareholders as dividends.  Show more…

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