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Stock price can't double. The amount of cash the company has must decrease by an amount equal to half its market cap. That should do something roughly equival
by recursive 4y ago
Stock price can't double. The amount of cash the company has must decrease by an amount equal to half its market cap. That should do something roughly equivalent to the value of the company.
- s1artibartfast 4y agoThe doubling is relative to if they had paid a dividend of the same value. Stock price can double with the same market cap if you reduce the number of outstanding shares by half.