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Does A company’s share price reflects the discounted value of either its future dividends or its future earnings

Asked by: 365 days ago - 1 Answers - 1098 views

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    In my opinion, it will be incorrect to refer to future dividends since there is no certainty dividends will be paid even when there are earnings. It is the discounted value of all future earnings.
    A business gets earnings almost always as long as business is good. The question is whether directors will pay dividends or choose retained profits.
    Investors are concerned about earnings more than they are about dividends because even retained earnings could be reinvested to improve the business.

    Answer by Newton Okewoye 360 days ago


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