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NEW QUESTION: 1
A firm follows the simple growth model and can invest $1000 every year into new projects which have a rate of return of 17%. Each project generates a constant stream of earnings year after year. The firm's stock has a required rate of return of 13%. If the firm is founded today, the firm value equals ________.
A. $3,165
B. $2,675
C. $1,895
D. $2,440
Answer: B
Explanation:
Explanation/Reference:
Explanation:
You should be careful in solving such a problem.
Suppose the firm invests $1,000 today in a project. This first project generates a constant stream of perpetuity with an annual payment of $1,000 * 0.17 = $170. The present value of this stream is 170/0.13
$1,307.6. The NPV of the project is then $1,307.6 - $1,000 = $307.6. Since the firm does this every year, it has a perpetuity of $307.6 (the NPVs of projects 2 and on, at the time the projects are started).The present value of these NPVs is $307.6/0.13 = $2,367. Thus, the total value of the firm is $2,367 + $307.6 (first project) = $2,675.

NEW QUESTION: 2
You are designing an n-tier .NET Framework 4 solution that includes a Windows
Presentation Foundation (WPF) application.
The WPF application will access data stored in a Microsoft SQL Server 2008 database by
using the solution's data access tier.
The data access tier must also be available from within Microsoft Excel 2010. You need to recommend a technology for accessing the data access tier. Which technology should you recommend?
A. ADO.NET Entity Framework 4
B. LINQ to XML
C. WCF Data Services
D. LINQ to SQL
Answer: D

NEW QUESTION: 3
質問をドラッグアンドドロップ
SMB NASクライアントのストレージをプロビジョニングするための正しい手順のシーケンスは何ですか？

Answer:
Explanation: