Show that an owner of P V Ltd in Example would not care whether P V Ltd paid any dividend at the end of year 1 State precisely why this is the case ...

Suppose that PV Ltd paid a dividend of 10 at the end of year 1 any portion of year 1 net income woul ...

Show that an owner of P. V. Ltd. in Example would not care whether P. V. Ltd.

Question:

Show that an owner of P. V. Ltd. in Example would not care whether P. V. Ltd. paid any at the end of year 1. State precisely why this is the case.

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...