Elena Johnson owns 100 shares of Funky Foods, which has 100,000 shares of stock outstanding. Funky Foods is expected to earn $1 million in after-tax profits every year forever. The interest rate is 5 percent (0.05) per year. According to the principle of asset valuation, what is the value of Elena's shares?
a. $200,000
b. $10,000
c. $20,000
d. $100,000
e. $2,000
C
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