Assume Lenny Company manufactures specialized computer peripheral parts such as speakers, modems, etc. It is a new

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Assume Lenny Company manufactures specialized computer peripheral parts such as speakers, modems, etc. 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 percent. 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 stock holders do not receive dividends?

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Survey Of Accounting

ISBN: 9780538846172

1st Edition

Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen

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