You are invited to participate in a new company. The company is projected to payout $10,000 in the first year, and after that the payouts will grow by an annual rate of 6 percent forever. If you can invest the cash flows at 8 percent, how much will you be willing to pay for this perpetuity
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You are invited to participate in a new company. The company is projected to payout $10,000 in the first year, and after that the payouts ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
1 poi 5. Which of the following is true regarding colloquial pronunciation in a business setting? Select one: a. It is not preferable for business standards. O b. It is okay if everyone else speaks that way. O c. It shows you are down-to-earth. d.
Answers (1)
A company purchased a tract of land for its natural resources at a cost of $1,981,300. it expects to mine 2,170,000 tons of ore from this land. the salvage value of the land is expected to be $267,000. the depletion expense per ton of ore is:
Answers (1)
Candidates running for a nonjudicial office in the State of Texas can raise how much money for their campaign? a. $150,000 per donorb. $500,000 per electionc. an unlimited amount of moneyd. $40,000 per month
Answers (1)
Types of long term insurance offered by avbob
Answers (1)
The excess of revenue over the expenses incurred in earning the revenue is called capital. True False
Answers (1)
New Questions in Business
What do you need to start a new business
Answers (2)
Suppose a perfectly competitive firm is in the following situation: P = $10, output = 3,000, ATC = $11, MC = $10, and AVC = $7.50.
Answers (1)
Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of the kits next quarter at a price of $11, and the other 50 kits in the third quarter at a price of $12.
Answers (1)
In 1929, how much more did the average family in the top 20 percent earn than the average family in the bottom 40 percent?
Answers (1)
Gina loaned Tom $50,000. Tom signed a note the terms of which called for monthly payments of $2,000 plus 6% interest on the outstanding balance. In 2018, when the balance owing on the loan was $18,000, Tom defaulted on the note.
Answers (1)