An analyst knows with certainty that skipper inc will exist, Ask an Expert

Economics

An analyst knows with certainty that Skipper Inc. will exist for two years and have the following cash flows per share:

Year 1 Year 2

Revenue $100 $100

Costs $ 80 $ 80

New Cash Flow $ 20 $ 20

a) What is the stock price of Skipper Inc., if the opportunity cost of capital is 8 percent?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91673741

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