Question
You inherited 100 acres of Iowa farmland. There is an active market in this type of land, and similar properties currently sell for $10,000 per
You inherited 100 acres of Iowa farmland. There is an active market in this type of land, and similar properties currently sell for $10,000 per acre. If planted with corn, you expect that the land will deliver net cash flows of $800 per acre forever. If the discount rate is 10%, how much is the land worth per acre?
| $10,000 | |
| $8,000 | |
| $18,000 | |
| $12,000 |
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Stocks For The Long Run
Authors: Jeremy Siegel
6th Edition
1264269803, 978-1264269808
