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Q) If afirm pays$8,010 dividendnow after investing in all best opportunities from it initial endowment of$21,914, what will be the value of the firm after
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If afirm pays$8,010 dividendnow after investing in all best opportunities from it initial endowment of$21,914, what will be the value of the firm after investment decision when firm's averagerate of return from investment is40% and average market rate of return is 9%? Assumetwo-period perfect certainty model.
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