Multiple Choice
Suppose the interest rate is 6 percent,the expected growth rate of the firm is 3 percent,and the firm is expected to continue forever.If current profits are $1,200,what is the value of the firm?
A) $41,200
B) $40,000
C) $36,500
D) $42,400
Correct Answer:
Verified
Correct Answer:
Verified
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