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2. One way to find the value of a share of a stock of a company is to assume the present value of a
2. One way to find the value of a share of a stock of a company is to assume the present value of a company is the present value of its projected income stream. The value of each share of stock is equal to the present value of the company divided by the number of shares. For example, if the present value of a company is $10,000 and there are 50 shares of stock, then each share has a present value of $10,000 = $200. 50 Find the value of each share of a company with 700 shares if the company is expected to earn $350,000e0.01t per year, t years from now, forever. Assume that the income stream is continuous and that the continuous interest rate is 5% per year. odt buit 082 1-200 01.0 9 = 00008 2 izogob or 1 (d)
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