The next questions refer to the following.
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million.
-This firm should
A) divest itself of some of its capital
B) issue more stock
C) continue to operate as it is
D) invest in new plant and equipment
E) issue bonds

Question

Quizplus · Accepted Answer

The Answer of The next questions refer to the following.
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million.
-This firm should
A) divest itself of some of its capital
B) issue more stock
C) continue to operate as it is
D) invest in new plant and equipment
E) issue bonds

The Next Questions Refer to the Following