Question: QUESTION 4 Like many large-cap tech stocks, Uber does not currently pay dividends to its shareholders and is unlikely to initiate a dividend stream soon

QUESTION 4 Like many large-cap tech stocks, Uber does not currently

QUESTION 4 Like many large-cap tech stocks, Uber does not currently pay dividends to its shareholders and is unlikely to initiate a dividend stream soon given the uncertainty induced by Covid-19. a. How is it possible that investors are willing to buy shares in Uber if the stock price is the present value of expected future dividends (according to the valuation theory)? (2 marks) b. Under what circumstances might a company like Uber choose not to pay dividends? (2 marks)

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