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A software firm earned ten million this year. Suppose the growth rate of the software firm and the interest rate are both constant and the software company will be business for years to come.
Determine the value of the software company when:
[A] The interest rate is 10 percent and profits grow by 4 percent per year
[B] The interest rate is 10 percent and profits grow by 0 percent per year
[C] The interest rate is 10 percent and profits decline by 4 percent per year

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9308974

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