Answer to Question #5644 in Finance for LaMarcus Streeter

Question

A stockholder is interested in the ability of a firm to

pay consistent dividends.

appreciate in share price.

survive over a long period.

all of these.

Answer 1

All of this.

A stockholder is interested in the ability of the firm to pay consistent dividends as it was the
reason to invest in the shares. A stockholder is also interested when the price
of the shares rises on the market as he can sell them if he needs or interested
to do so. A stockholder is interested in the ability of the firm to survive over
the long period as for all this period he expects to be paid consistent
dividends and the shares to rise in price. The shares bought for rather small
price can considerably grow in price over the years. Thus we can admit that a
stockholder is interested in all mentioned above.