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?
a. $500.00
b. $6,250.00
c. $5,000.00
d. $10,000.000
e. $8,333.33
B
Economics
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