Suppose a firm is operating in 2 periods. The shareholders are expecting to receive $100,000 economic profits (per share
Posted: Wed Mar 09, 2022 8:27 am
Suppose a firm is operating in 2 periods. The shareholders are
expecting to receive $100,000 economic profits (per share of stock)
in period 1 and $120,000 (per share of stock) in period 2. Given
the required rate of return is the same in both period, which 0.1
and the real option value is $50,000. What is the current value of
a share of stock? (Report your answer with 2 decimal
points)
expecting to receive $100,000 economic profits (per share of stock)
in period 1 and $120,000 (per share of stock) in period 2. Given
the required rate of return is the same in both period, which 0.1
and the real option value is $50,000. What is the current value of
a share of stock? (Report your answer with 2 decimal
points)