Use the Geometric Series Formula to Find the Sum of Of 1

question 102

Multiple Choice

Use the geometric series formula to find the sum of of $1 + \frac { 1 } { 4 } + \frac { 1 } { 4 ^ { 2 } } + \frac { 1 } { 4 ^ { 3 } } + \frac { 1 } { 4 ^ { 4 } }$

• A) \(\frac { ( 4 ) ^ { 5 } - 1 } { (4 ) - 1 }\)
• B) \(\frac { \frac {1}{4^5} - 1 } { \frac {1}{4} - 1 }\)
• C) \(\frac { 4 ^ { 4 } - 1 } { 4 - 1 }\)
• D) \(\frac { \frac{1}{4^4} - 1 } { \frac{1}{4} - 1 }\)

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claims on the company.

Capital Stock

Represents the original investment in a company by its owners or shareholders, indicated through the issuance of shares.

Treasury Stock

Shares that were once a part of the outstanding shares but were later repurchased by the company and held in its own treasury.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.