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Stretchy Socks,Inc

Question 75

Multiple Choice

Stretchy Socks,Inc. ,is expected to earn $2,000,000 in after-tax profits each year forever.The interest rate is 0.1.What is the total value of all shares of stock in Stretchy Socks?


A) $1,818,182
B) $2,000,000
C) $16,528,926
D) $18,181,818
E) $20,000,000

Correct Answer:

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