Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 6, Problem 20QAP
Summary Introduction

Adequate information:

Expected sales units=3,400,000

Price per unit=$1.43

Cost per unit=$0.85

Growth rate in revenue=1.3 percent

Growth rate in costs =0.9 percent

Real interest rate=6 percent

To compute: Company’s worth today

Introduction: The present worth of the company can be computed using the discounted value of costs incurred and the discounted value of revenues earned in the present day.

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Chapter 6 Solutions

Corporate Finance

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