Suppose the growth rate of the firm's profit is 5 percent, the interest rate is 6 percent, and the current profits of the firm are $80 million. What is the value of the firm?
A. $1,413.3 million
B. $89.2 million
C. $8,480 million
D. None of the statements associated with this question are correct.
Answer: C
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How is economic growth shown in a production possibilities frontier graph?
What will be an ideal response?
The Federal Reserve System controls the money supply primarily through
A. open market operations. B. accounting operations. C. reserve requirement changes. D. jawboning.
Nations with low levels of GDP per capita may converge to richer nations if:
A. nations with high levels of income experience a continuously increasing growth rate. B. nations with lower levels of income grow more quickly than those with higher levels of income. C. nations with lower levels of income spend less on investment. D. nations with lower levels of income grow more slowly than those with higher levels of income.
The most basic concept of economics is
A) money. B) scarcity. C) bounded rationality. D) shortage.