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4 Abbey Corp. has 2 million shares of common stock that are currently selling for $40 per share. These shares were issued five years ago
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Abbey Corp. has 2 million shares of common stock that are currently selling for $40 per share. These shares were issued five years ago at a price of $8 per share and represent the only shares the firm has issued to date. Total net income earned over the past five years is $20 million; total dividends paid during the period are $2 million. What is the firm's market value added, MVA?
Select one:
a. $40 million
b. $42 million
c. $46 million
d. $60 million
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