If Gamma Ltd. is a company that prohibits dividend payments entirely and forever, what will its stock be worth? Select one: a. Its stock price will be infinitely large. b. Its stock price will be lower than other similar companies. c. Its stock price must be calculated with the formula Benchmark P/E ratio x EPS. d. Its stock will be worth nothing. e. Its stock price must be calculated using the formula P = D/r.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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If Gamma Ltd. is a company that prohibits dividend payments entirely and forever, what will its stock be worth?

Select one:
a. Its stock price will be infinitely large.
b. Its stock price will be lower than other similar companies.
c. Its stock price must be calculated with the formula Benchmark P/E ratio x EPS.
d. Its stock will be worth nothing.
e. Its stock price must be calculated using the formula P = D/r.
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