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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 stock price?


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

发布时间:2026-01-31 05:54:06
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答案:Reinvesting 25% of earnings each year into projects with return of 18% per year
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