Re:Facebook trades under $30, down 7%+
by omonra on Tuesday May 29, 2012 @04:50PM
(#4039805)
No
Because if the company keeps the cash it still is part of the company worth calculation (unless investors expect managers to steal it in the future). Not issuing a dividend is also a signal that the company believes it can earn a better return on the cash then if it were returned to the shareholder.
Because if the company keeps the cash it still is part of the company worth calculation (unless investors expect managers to steal it in the future). Not issuing a dividend is also a signal that the company believes it can earn a better return on the cash then if it were returned to the shareholder.