Assume Lenny Company manufactures specialized computer peripheral parts like speakers and modems. It is a new company

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Assume Lenny Company manufactures specialized computer peripheral parts like speakers and modems. It is a new company that has been in operation for just two years. During those two years, Lenny’s stock price has increased over 400%. Lenny 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’s stock if stockholders do not receive dividends?

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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