Question

Why did Whole Foods stock price dropped in 2014 from 0.41 to 0.38 although the dividends...

Why did Whole Foods stock price dropped in 2014 from 0.41 to 0.38 although the dividends grew by 20%?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Whole foods is facing serious challenges in the form of competition from Walmart and Kroger. The competition in the form of lower prices posed by the competitors is going to hurt the market share of whole foods. The market anticipates lower profits for the company. The stock price is determined by future cash flows and dividends expected from a business and not by the current dividends.

Whole foods lowered its anticipated sales for the coming years which led to fall in Expectations of profits from this company. The sales growth stagnated in 2014. The company was aiming to be a hypergrowth company but it has not been able to keep up to its targets. This led to the decline of the stock price of the business.

Add a comment
Know the answer?
Add Answer to:
Why did Whole Foods stock price dropped in 2014 from 0.41 to 0.38 although the dividends...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT