Company X has 100 shares outstanding. It earns $1,000 per year and expects repurchase its shares in the open market instead of paying dividends. Calculate the stock price at the end of year-1, if the required rate of return is 10%.
A)	$110
B)	$ 90
C)	$100
D)	none of the above
Answer:A
Company X has 100 shares outstanding. It earns $1,000 per year and expects repurchase its shares in the open market instead of paying dividends. Calculate the stock price at the end of year-1, if the required rate of return is 10%.
A)	$110 B)	$ 90 C)	$100 D)	none of the above