Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 15 Nov 2017 My Price 4.00

Lenny Company

To Pay or Not To Pay Dividends

Assume Lenny Company manufactures specialized computer peripheral parts such as speakers and modems. It is a new company that has been in operation for just two years. During those two years, Lenny Company’s stock price has increased over 400%. Lenny Company does not pay dividends nor does the company plan to do so in the future. However, the company’s stock seems to be heavily traded. Why do you think there is so much interest in buying Lenny Company’s stock if stockholders do not receive dividends?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 15 Nov 2017 07:11 PM My Price 4.00

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