You are considering the purchase of a business that is currently earning $25,000 per year in after-tax profit. If these conditions are expected to continue year after year into the future, and the interest rate is currently 10 percent, the current market value of this business is
A) $2,500.
B) $25,000.
C) $250,000.
D) $2,500,000.
Correct Answer:
Verified
Q7: No questions exist for this section.
Q8: If a nation is going to benefit
Q9: Erin just won Lotto America, which will
Q10: The Jones family has always been in
Q11: Investment in capital goods only makes sense
Q13: The pure interest yield
A) reflects the expectation
Q14: Arnold is considering purchasing a business for
Q15: In order to fully realize the gains
Q16: The money rate of interest is the
A)
Q17: If people prefer to consume goods now
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