Corporate Finance Assignment/ Professional Essay Writers
May 9th, 2020
You own a wholesale plumbing supply store. The store currently generates revenues of $ 1.04 million per year. Next year, revenues will either decrease by 9.7 % or increase by 5.3 %, with equalprobability and then stay at that level as long as you operate the store. You own the store outright. Other costs run $ 890 comma 000 per year. There are no costs to shutting down; in that case, you can always sell the store for $ 540 comma 000.
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What is the business worth today if the cost of capital is fixed at a 10.2 % question mark. (Hint: Make sure to round all intermediate calculations to at least four decimal places.) Get Finance Help Today