If Andre Preneur puts together a company that yields a profit of $40, 000 per year and this profit stream is expected to continue indefinitely, what price can he sell the company for if the discount rate equals 8 percent?
A) $40, 000
B) $60, 000
C) $100, 000
D) $250, 000
E) $500, 000
Correct Answer:
Verified
Q155: A $100 annuity is
A)$100 received in a
Q156: You buy a bond for $1, 000
Q157: If a company offers a consultant the
Q158: If you are receiving $2, 000 per
Q159: A firm is considering the purchase of
Q161: Corporations can acquire funds for investment projects
Q162: If 900 million shares of stock are
Q163: Sharing music files is not a(n)
A)victimless crime
B)example
Q164: The largest securities exchange in the United
Q165: The payment of a given sum of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents