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Entrepreneur Zark Muckerberg is starting a company out of his dorm room and is asking for you to invest in it in exchange for a
Entrepreneur Zark Muckerberg is starting a company out of his dorm room and is asking for you to invest in it in exchange for a special preferred share that initially will not pay any dividends. In 11 years, the first annual dividends of 10,000 USD will be paid. (You will be paid this dividend every year after that.) You require at least a 20% expected annual return on this investment. What is the most you are willing to invest in Mr. Muckerberg's company? A. $9,061 B. $8,075 C. $50,000 D. $10,000 E. $1,615 Correct
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