IntFin Inc. has two investment opportunities that will pay each 10 per year for the upcoming 10 years. The costs for both investment opportunities is 40 together. If the return on assets is 12% and IntFin Inc. has 2 million shares outstanding, then what is the fair price of each share of the company?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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IntFin Inc. has two investment opportunities that will pay each 10 per year for the upcoming 10 years. The costs for both investment opportunities is 40 together. If the return on assets is 12% and IntFin Inc. has 2 million shares outstanding, then what is the fair price of each share of the company?

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