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Why would an investor be attracted to its stock

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Reference no: EM132879280

Problem - Dividend yield - eBay Inc. developed a Web-based marketplace, in which individuals can buy and sell a variety of items. eBay also acquired PayPal, an online payments system that allows businesses and individuals to send and receive online payments securely. In a recent annual report, eBay published the following dividend policy:

We have never paid cash dividends on our stock and currently anticipate that we will continue to retain any future earnings for the foreseeable future.

Given eBay's dividend policy, why would an investor be attracted to its stock?

Reference no: EM132879280

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