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Violate basic principle of stock valuation

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Reference no: EM131428901

CelestilaMoonn, an UMB MBA student selected Google stock for Capital Market/Portfolio construction project. Last week,Moonnrealized that the stock lost 10% of its value since since the stock was purchased. Moonnalso noticed that Googlepays no dividends yet investors are willing to buy shares in this firm. How is this possible? Does this violate basic principle of stock valuation? Do you supportMoonn'sconcerns? Briefly justify.

Reference no: EM131428901

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