Question
You are the financial manager of Any Brother company. One day, the CEO of the company comes to your office and asks you the following
You are the financial manager of Any Brother company. One day, the CEO of the company comes to your office and asks you the following questions: “ What determine the stock price? Is it dividend? What else should we consider? I notice that there are some companies like Tencent, that pays very small amount of dividend per share to shareholders could have very good rise in their stock price. Does it mean that we should pay less or even no dividend to shareholders?” “Besides, our company has become a publicly listed firm in Hong Kong for three years. Should the company still concern its current stock price? Why?”, said the CEO. Regarding the questions of the CEO, explain your points to CEO. Illustrate your explanation with example(s).
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Certainly CEO the stock price of a company is determined by various factors not just dividends While dividends can influence investor sentiment they a...Get Instant Access to Expert-Tailored Solutions
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