Does capital gain represent cost to the firm. Would you explain in detail the attached picture.
dividends and capital gains. These dividends and capital gains represent costs to thefirm. It is easier to see this for dividends. Any dividend paid to a new shareholder iscash that cannot be paid to an old shareholder. But capital gains also represent a costto the firm. Appreciation in the value of a firm’s stock is shared by all stockholders. Ifpart of the capital gain goes […]