According to the general dividend valuation model, a firm that reinvests all its earnings and pays no

Question:

According to the general valuation model, a firm that reinvests all its earnings and pays no cash dividends can still have a value greater than zero. How is this possible?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...