Multiple Choice
Suppose the interest rate is five percent, the expected growth rate of the firm is two percent, and the firm is expected to continue forever.If current profits are $1,000, what is the value of the firm?
A) $31,000.
B) $30,000.
C) $26,500.
D) $35,000.
Correct Answer:
Verified
Correct Answer:
Verified
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