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If Microsoft Stock Has a Constant Net Return Each Year

Question 48

Multiple Choice

If Microsoft stock has a constant net return each year, then the value of a share of Microsoft stock is determined by


A) subtracting Microsoft's total costs from its total revenue.
B) multiplying the annual net income by the number of shares.
C) dividing the annual net income from the asset by the interest rate.
D) both a and b above.

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