If Microsoft Stock Has a Constant Net Return Each Year

question 48

Multiple Choice

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.