Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
Assume two-period perfect certainty model condition. A firm is undertaking projects of $4,480,000 under optimal investment opportunities.
Assume two-period perfect certainty model condition. A firm is undertaking projects of $4,480,000 under optimal investment opportunities. The remaining $2,000,000 fund of the firm has been distributed as dividend at now. Average market rate is 12% and the optimal investments the firm will produce NPV of $720,000. What would be the value of the firm after investment decision?
