Mega Computer Issued Stock with a Face Value of One

question 260

Multiple Choice

Mega Computer issued stock with a face value of one cent and then sold the shares to the public for $20.00 each. Ted bought 10 shares at that price. Today, Ted sold his shares to David for $25.00 each. What is the market value of the stock?

• A) $50.00
• B) $25.00
• C) $20.00
• D) $19.99
• E) $0.01

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Definitions:

Expected NPV

The anticipated net present value of an investment, taking into account the probability of different outcomes.

Future Cash Flows

Projections of how much money a company will generate or use in future periods, often used in investment analysis.

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The federal department responsible for helping Canadians maintain and improve their health, ensuring high-quality health services are accessible to all.

Expected Cash Flows

Estimated cash inflows and outflows over a specific period, important for analyzing investments and financial planning.