Question
please show elations and steps 35. Compute how much a business is worth if it is expected to generate cash flows of $14,000 next year,
please show elations and steps
35. Compute how much a business is worth if it is expected to generate cash flows of $14,000 next year, $22,900 in two years, $34,800 in three years, and then $54,000 per year for the subsequent 6 years, assuming that businesses with similar relevant risk have expected returns of 18%.
36. Compute the annual expected return on a stock which has a market price of $100, pays no dividends, and is expected to sell for $140+6 dollars in 5 years.
37. A stock is expected to pay a dividend of $1 per share next year, $1.10 per share in the following year, $1.20 in the subsequent U years, and then be sold for $15 in 6 years. Compute the interest rate or expected return on this stock.
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