Multiple Choice
Suppose the current price of gold is $600 per ounce. The price of gold is expected to grow 4 percent per year for the foreseeable future. If the appropriate discount rate is 10 percent, then the current value of gold per ounce is
A) less than $600 per ounce.
B) $600 per ounce.
C) greater than $600 per ounce.
D) Not enough information is provided.
Correct Answer:
Verified
Correct Answer:
Verified
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