Crazy Cryptography Is a Software Corporation That Has 1,000 Shares

Crazy Cryptography is a software corporation that has 1,000 shares of stock in existence.The corporation has just surprised the market by announcing a new software package that will increase the company's after-tax profit by $500,000 each year,forever.If the interest rate is 8 percent (0.08) per year,by how much will the value of a single share of stock increase?

A) $500.00
B) $6,250.00
C) $5,000.00
D) $10,000.000
E) $8,333.33

Correct Answer:

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