Apple Inc., a company listed on the stock exchange which recently did not give d
ID: 3007062 • Letter: A
Question
Apple Inc., a company listed on the stock exchange which recently did not give dividend to shareholders and yet investors are willing to buy their shares. How is this possible? Does this violate the basic principle of stock valuation? Discuss. Apple Inc., a company listed on the stock exchange which recently did not give dividend to shareholders and yet investors are willing to buy their shares. How is this possible? Does this violate the basic principle of stock valuation? Discuss. Apple Inc., a company listed on the stock exchange which recently did not give dividend to shareholders and yet investors are willing to buy their shares. How is this possible? Does this violate the basic principle of stock valuation? Discuss.Explanation / Answer
Apple inc. is a company listed on the stock exchange.
Apple Inc. recently did not give dividend to shareholder.
Possibilities are:
There are chances that dividend is agreed to be paid at a future date.
Or instead of dividends bonus shares were given.
Or share values increased to investors.
Or share prices appreciated considerably and investors think it profitable to invest in this share
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