If Microsoft stock has a constant net return each year, then the value of a share of Microsoft stock is determined by
a. subtracting Microsoft's total costs from its total revenue.
b. multiplying the annual net income by the number of shares.
c. dividing the annual net income from the asset by the interest rate.
d. both a and b above.
C
You might also like to view...
Economic growth is an exponential process because gains made in one year accumulate in future years.
Answer the following statement true (T) or false (F)
The devaluation of a currency results in a(n):
a. initial increase in trade balance, but an eventual decline in trade balance. b. permanent decline in trade balance. c. permanent increase in trade balance. d. initial decrease in trade balance, but an eventual increase in trade balance.
Which of these is true of blockholders?
A. They add value to the corporation when they extract private benefits. B. They should not be managers of the firm. C. They participate more than small shareholders in the governance process because they internalize more of the benefits. D. They are superior to institutional investors in their ability to reduce agency costs.
Define GDP. Remember to be specific about what it includes