happydolphin on 17 February 2012
Can a company retain all earnings rather than pay dividend?
http://en.wikipedia.org/wiki/Dividend
I'm asking because I'm trying to find the relationship between earnings and fluctuations (possible surges) in the market.
If earnings all retained, then that means the intrinsic value of the company increases, hence its market value should in theory increase. Can a stock be undervalued? (Meaning it holds a value lower than what the company is actually worth?)
