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What is the current value of a share of stock

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Reference no: EM133116912

Question - 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 0.08 and the real option value is $50,000. What is the current value of a share of stock?

Reference no: EM133116912

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