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Crazy Cryptography is a software corporation that has 1,000 shares of stock in existence.The corporation has just surprised the market by announcing a new software package that will increase the company's after-tax profit by $500,000 each year,forever.If the interest rate is 8 percent (0.08) per year,by how much will the value of a single share of stock increase?
Allocation Process
The method of distributing costs among different departments, products, or services for accounting purposes.
Expense Recognition Principle
An accounting principle that expenses are recognized and recorded when they are incurred, regardless of when cash payments are made.
Expenses
Costs incurred in the operation of a business to earn revenue, including operating and non-operating expenses.
Revenues
Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.
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