The Value of Stock

Directions,
This order is a discussion post, therefore must include an initial response to the prompt, and two secondary responses. These secondary responses of are students who have already replied to the initial post. These responses must be insightful and helpful to the student. The initial response MUST be completely answered. The order must adhere to APA format, include appropriate in-text citations, and it MUST include a reference page.
Example of in-text citation: (Last Name, Year of Publication, Paragraph Number/Page Number)

Initial Post,
Why does the value of a share of a stock depend on dividends? If that is the case, the stock that doesn’t pay dividend should not have any appreciation in value. True or false? Explain your choice.

Don't use plagiarized sources. Get Your Custom Essay on
The Value of Stock
Just from $13/Page
Order Essay

Student Responses,
Haley
Why does the value of a share of stock depend on dividends? The value of stock depends on dividends because payment of dividends is the primary way for organizations to share their earnings with stockholders. A share of stock with a higher dividend is more likely to have a higher stock price due to increased demand for the stock. Is the statement “if a stock does not pay dividends it should not have any appreciation in value,” true or false? The statement “if a stock does not pay dividends it should not have any appreciation in value,” is false. Just because a stock is not currently paying dividends does not mean that in the future it will not appreciate in value. The value of an investment depends on present value of expected future cash flows. An investor may invest in an unfavorable stock now because it may become a favorable investment in the future. A few unfavorable stock examples would be a new company or a company that is currently is financial distress. A new company is not typically profitable in the beginning but after a few months or years it can become profitable and the value of the company will go up. Investors can make a lot of money from purchasing cheap stock for a new company that can grow and greatly increase its stock value. Also a company that is currently having financial issues can change their managerial or production strategies and become profitable again so buying cheap stock for companies in this situation could be profitable as well in the future.

Alexus
Why does the value of a share of a stock depend on dividends? The value of a stock does depend on the the dividend it pays. The value of investments depend on the present value of the expected future expected cash flow. Companies choose to pay dividends. Investors will buy stock from companies even if they are not currently paying dividends because investors believe that the company will eventually start paying dividends. Dividends are a source of cash flow from the shares of stock. Investors take a chance on investing because there is en expected future cash flow.
The stock that doesn’t pay dividend should not have any appreciation in value. True or false? This question is false. Some companies may choose to decline dividends because they are a cash expense. New or young companies especially will decline dividend opportunities for some time because it is an expense where money is going out the door. Companies who are struggling or in a bad financial situation may opt out of dividends as well. Dividends add up and it is money going out. Viewing financial documents and reviewing what is coming in and going out of the company will help determine if a company can afford to pay out dividends. For more information on The Value of Stock checkout this: https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/money-banking-and-investment/stocks

The Value of Stock

Grab 16% Discount On This Paper
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

ACME Homework provides the best top-grade academic writing services in compliance with our customers’ instructions. Have your paper written by a certified professional online college homework help writer to produce only high-quality essays with zero plagiarism.

Professional Academic Writers

You can now choose from a pool of online college homework help writers. Choose your writer and have them write the best content for you. ACME Homework has, over the years, secured a team of the most reliable, experienced, and qualified writers. You can, therefore, trust that your assignment is in good hands.

Affordable Prices

We know that students have very limited budgets. And for that, we always strive to provide only the best, most affordable online college homework help services to our customers. Our goal is to provide top-quality assignment help services to all customers at the lowest, most affordable prices.

On-Time delivery

At Acmehomework.com, we pay strict attention to deadlines. We recommend you to check out clients’ reviews for assurance that we will complete your assignments within the set deadlines. You can, therefore, trust that your paper will be done within and before the set deadline. Until now, we have not missed a single deadline.

100% Originality

Our Acmehomework.com homework helper experts write only 100% original and plagiarism-free content for all of our clients. We also have a Quality Assurance Department team that goes through all work submitted by our writers multiple times. You can, therefore, rest assured that any signs of plagiarized or unoriginal content will be rejected before it reaches your portal.

Customer Support 24/7

Acmehomework.com expert writers are always available 24/7 for customers who need assistance with using our website. You don’t have to check your watch the next time you want to have your assignment written. Our customer support is always available round the clock and ready to listen to your queries. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Grab 16% Discount On This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

For years now, Acmehomework.com has stood as a leader in providing its customers with the best online college homework help service in the industry. And all you have to do is provide us with the details of your order. Leave everything else to us. We’ve always got you covered.

Essays

Essay Writing Services

Since we launched, Acmehomework.com deserved the best online “college homework help status” thanks to our essay ordering, writing, and delivery process. We deliver nothing but excellence in our results. Our essay writing services include impeccable grammar, zero-plagiarism, proper structure, and conformance to guidelines.

Admissions

Admission and Business Papers

Our top-quality online college homework help services guarantee that you will be accepted into your desired university. You just need to fill out your admission and business papers, and our team of online homework help workers will handle the rest. We will help you achieve and secure the best positions in your admissions forms.

Editing

Editing and Proofreading

At Acmehomework.com, we have a skilled writing and editing team that’s dedicated to creating, editing, and restructuring for all types of papers. Our online college homework help editing and proofreading team will check, paraphrase, and correct any grammar mistakes on your paper before submitting the final document to you.

Coursework

Technical Papers

At Acmehomework.com, we pride ourselves in having writers in almost all fields, even the most technical ones. You never have to worry about your paper being too technical for our certified online college homework help writers to handle. ACME Homework’s team of writers can handle even the most complex writers. We will match your paper to the most competent writer that we believe will handle your paper the best way possible.

                                                                                     Place Order