If you own 10% of the shares of a corporation's stock,and the corporation is expected to earn $9 million a year in after-tax profits forever,and the interest rate is 0.05,what is the value of your shares?
A) $18 million
B) $900,000
C) $9 million
D) $6 million
E) $180 million
Correct Answer:
Verified
Q64: When the demand for alternative investments increases,the
Q65: The price/earnings (PE)ratio of a stock is
Q66: Which of the following types of bond
Q67: Crazy Cryptography is a software corporation that
Q68: Xanadu Corp.has issued 90 million shares of
Q70: The payments made to shareholders from a
Q71: When the demand for alternative investments decreases,the
Q72: The demand curve for shares of a
Q73: On a secondary stock market,such as the
Q74: When the market estimate of a company's
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents