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2. Jake owns 100 shares of company X' stock and has been receiving dividend for the past few years. Very recently the company announced
2. Jake owns 100 shares of company X' stock and has been receiving dividend for the past few years. Very recently the company announced (and market expects) that it will continue to pay dividend for the next 5 years but will cease to pay dividend after that indefinitely. Jake says, "I am okay with receiving no more dividend after that, because future cashflow doesn't have to be future dividends but can also be future selling price. I will still get the cash by selling my shares in 5 years. That's why I'm fine with company paying no more dividend in the future." Analyze Jake's remarks, making sense or are there any flawed arguments?
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