|
|
|
|
|
|
by mcgoo
3729 days ago
|
|
|
The future earnings have huge uncertainty to them. A company with a $50 stock price might have $5 per share worth of cash in the bank, (which is something you can actually observe.) The other $45 represents expected future earnings. If the stock pays out a 50c dividend, the stock now has $4.50 per share in the bank and the $45 expected future value is unchanged. |
|
|