Final answer:
The value of a share of stock in Babble, Inc. is calculated by dividing the total expected profit by the number of shares.
Step-by-step explanation:
In order to calculate the value of a share of stock in a company, we need to consider the expected profits and the number of shares. In the case of Babble, Inc., the profits are expected to be $15 million right away, $20 million one year from now, and $25 million two years from now. Since all profits will be paid out as dividends, the total expected profit for the company is $60 million over the next two years. With 200 shares being sold, the value of a share would be calculated by dividing the total expected profit by the number of shares: $60 million / 200 shares = $300,000 per share.