Question
The firm is expected to grow forever at a rate of 2 percent per year. The current rate of interest is 5 percent, which is
The firm is expected to grow forever at a rate of 2 percent per year. The current rate of interest is 5 percent, which is expected to remain unchanged for the foreseeable future. What is the value of the firm if it is currently earning profits of $1,000?
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$26,500
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$35,000
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$31,000
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$30,000
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None of the options.
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Quantum Economics And Finance
Authors: David Orrell
3rd Edition
1916081630, 978-1916081635
