Answer:
$5.00
Explanation:
Market value can be regarded as the agreed price where both the buyer and seller perform their transaction, i.e the price buyer willing to buy and the seller willing to sell, which is intrinsic
Given
annual dividend= $50
rate of return = 10%
value of the stock = (annual dividend)×(rate of return)
=$50 *0.10
= $5.00
