Over the Years,O'Brien Corporation's Stockholders Have Provided $20,000,000 of Capital,when

question 81

Multiple Choice

Over the years,O'Brien Corporation's stockholders have provided $20,000,000 of capital,when they purchased new issues of stock and allowed management to retain some of the firm's earnings.The firm now has 1,000,000 shares of common stock outstanding,and it sells at a price of $32.00 per share.How much value has O'Brien's management added to stockholder wealth over the years,i.e. ,what is O'Brien's MVA?

• A) $9,000,000
• B) $15,000,000
• C) $14,400,000
• D) $13,200,000
• E) $12,000,000

---

Definitions:

Remarriage

The practice of entering into a new marriage following the dissolution of a previous marriage through divorce or the passing away of a spouse.

Siblings

Individuals who share at least one parent in common, including brothers and sisters, both full and half.

Noncustodial Fathers

Fathers who do not have legal custody of their child/children, and thus the children reside primarily with the other parent.

Custodial Mother

A mother who has been granted primary legal and/or physical custody of her child(ren) by a court.