【单选题】Consider a firm called BAT Corp., whose earnings per share are $25. Assuming the market capitalization rate is 15% per year. Which of the following investment strategies will result in the highest sto...
A.
Reinvesting 5% of earnings each year into projects with return of 18% per year
B.
Reinvesting 25% of earnings each year into projects with return of 18% per year
C.
Reinvesting 50% of earnings each year into projects with return of 15% per year
D.
Reinvesting 75% of earnings each year into projects with return of 15% per year
【单选题】Consider a firm called T&T Corporation, whose earnings per share are $15. Assuming the market capitalization rate is 18% per year. Which of the following investment strategies will result in the highe...
A.
reinvests 60% of its earnings each year into new investments that yield a rate of return of 18% per year
B.
reinvests 80% of its earnings each year into new investments that yield a rate of return of 18% per year
C.
reinvests 20% of its earnings each year into new investments that yield a rate of return of 20% per year
D.
reinvests 40% of its earnings each year into new investments that yield a rate of return of 20% per year