Crazy Cryptography is a software corporation that has 1,000 shares of stock in existence. The corporation has just surprised the market by announcing a new software package that will increase the company's after-tax profit by $500,000 each year, forever. If the interest rate is 8 percent (0.08) per year, by how much will the value of a single share of stock increase?

a. $500.00
b. $6,250.00
c. $5,000.00
d. $10,000.000
e. $8,333.33


B

Economics

You might also like to view...

Which of the following is a reason behind the rise in US trade over the last 80 years?

A) Rising government expenditure B) Improved bureaucracy C) Improved transportation technology D) Falling consumption expenditure

Economics

What is always true at the quantity at which average total cost equals average revenue?

a. economic profit is zero b. marginal cost equals marginal revenue c. economic profit is maximized d. revenue is maximized e. cost is minimized

Economics

Which of the following industries would be considered to have a labor intensive production process?

A. Farming in a rich country B. Working in a factory. C. Driving a cab. D. Writing a novel

Economics

If demand is unit-elastic, then a $5 decrease in price will lead to an increase in quantity demanded by 5 units

a. True b. False Indicate whether the statement is true or false

Economics