ed to buy your shares for P 4,200. A

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
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Your company has an employee cooperative. As an engineer working for 5 years now, you already have 40 shares of the
cooperative stock. A year ago, each share was worth P 200. The company then offered to buy your shares for P 4,200. At
what interest rate would the company's offer be equivalent to the worth of the stock last year?
Transcribed Image Text:Your company has an employee cooperative. As an engineer working for 5 years now, you already have 40 shares of the cooperative stock. A year ago, each share was worth P 200. The company then offered to buy your shares for P 4,200. At what interest rate would the company's offer be equivalent to the worth of the stock last year?
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