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Ray's Jams Inc

question 1

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Ray's Jams Inc.was just established with an investment of $5 million into stereo equipment.Ray expects his company to generate $800,000 a year for the next 200 years.If Ray's cost of capital is 15%, find the market value and book value of his company.(Use values in millions)


Definitions:

Aggressiveness

Hurting others and putting them on the defensive.

Spatial Intelligence

The ability to comprehend, reason, and remember the spatial relations among objects or space.

Kinesthetically Intelligent

The capacity to use one's body effectively to perform physical tasks, often associated with high bodily-kinesthetic intelligence.

Payoff

The benefit, reward, or return received as a result of an investment or action.

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