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Deep Oil Industries has generated constant revenues for the past 30 years but is unable to grow, due to legal problems. It earns 25 per
Deep Oil Industries has generated constant revenues for the past 30 years but is unable to grow, due to legal problems. It earns 25 per share per year, to be paid out to stockholders. The stock- holders have alternative investments of equivalent risk which yield 20 percent p.a.. Assuming that the company keeps going indefinitely, how much is one share of Deep Oil worth?
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