In chapter 9 of the textbook you learned about constant dividend model for valuation of a company’s stock. However, in certain industries, many companies do not pay dividends.
1 Discuss in which industries most companies do not pay dividend and why?
2 Which factors do you consider in order to value the stock of a company that does not pay dividend and how would you value the stock?
3 Select two publicly traded companies from two different industries and discuss how you would value the stock of those companies. Are your selected stocks overpriced or underpriced by the market?