FINANCE-Track Software paid $5,000 in dividends in 2015.
QUESTION
Track Software paid $5,000 in dividends in 2015. Suppose that aninvestor approached Stanley about buying 100% of his firm. If thisinvestor believed that by owning the company he could extract$5,000 per year in cash from the company in perpetuity, what do youthink the investor would be willing to pay for the firm if therequired return on this investment is 10%?
ANSWER:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.