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29. Estimate a ventures required rate of return based on the following information: terminal value = $400,000; current years net income = $20,000; next years

29. Estimate a ventures required rate of return based on the following information: terminal value = $400,000; current years net income = $20,000; next years expected cash flow = $25,000; and a constant growth rate = 7%.

a. 6%

b. 7%

c. 8%

d. 9%

e. 10%

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