A Number of Publicly Traded fiRms Pay No Dividends Yet

question 306

Essay

A number of publicly traded firms pay no dividends yet investors are willing to buy shares in these
firms. How is this possible? Does this violate our basic principle of stock valuation? Explain?

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Definitions:

Permethrin

A synthetic chemical used as an insecticide, acaricide, and insect repellent, often applied to clothing or bedding to kill or deter insects.

Lindane

A chemical substance previously used as an insecticide and as a medication to treat lice and scabies, now largely restricted due to safety concerns.

Nit Comb

A fine-toothed comb designed for the removal of lice eggs (nits) from human hair.

Human Organ

Any part of the body that performs a specific function or group of functions, such as the heart, liver, or lungs.