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27) An asset pays a ( $ 2 ) cash flow per year forever. The current market price of the asset is ( $ 100
27) An asset pays a \\( \\$ 2 \\) cash flow per year forever. The current market price of the asset is \\( \\$ 100 \\). We introduce an \\( 8 \\% \\) tax on the value of the asset. How much revenue will the tax raise per year? A) \\( \\$ 8 \\). B) \\( \\$ 3.2 \\). C) \\( \\$ 1.6 \\). D) \\( \\$ 0 \\)
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
