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Common Stock in a Business That Was Purchased for $100,000

Question 3

Multiple Choice

Common stock in a business that was purchased for $100,000 and has a discounted cash flow value of $340,000 would be worth __________ per share in an efficient market; there are 100,000 shares outstanding.


A) $2.40
B) $3.00
C) $3.40
D) $1.00

Correct Answer:

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