Question
Assume you are making an investment of $10000 in a stock that on average generates 7 percent per year. What is the most likely
Assume you are making an investment of $10000 in a stock that on average generates 7 percent per year. What is the most likely value of this investment in two years? (Hint: You need to use a simple future value of a lump sum formula to answer this question FV=PV*(1+r)^n. FV is future value, PV is present value, n is number of years and r is discount rate - which in this setting is growth rate. You are solving for FV.)
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Financial Reporting Financial Statement Analysis and Valuation
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6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
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