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You are considering an investment in a technology company. The beta of technology companies is 1.8. The annual risk-free rate is 2% and the annual
You are considering an investment in a technology company. The beta of technology companies is 1.8. The annual risk-free rate is 2% and the annual market return is 10%. The expected annual profit from the software subscription is $200,000 and it is expected to grow at the rate of 7% per year. What is the maximum price you are willing to pay for the company?
A. | $2,127,659.57 | |
B. | $2,370,925.78 | |
C. | $1,008,153.55 | |
D. | $2,250,000.00 |
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