Determine the Future Value of a Target Venture Which Has

question 59

Multiple Choice

Determine the future value of a target venture which has net income expected to be $40,000 at the end of four years from now. A comparable firm currently has a stock price of $20 per share, 100,000 shares outstanding, and net income of $50,000.

• A)$1.0 million
• B)$1.4 million
• C)$1.6 million
• D)$2.0 million

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Definitions:

Empowerment

The process of giving individuals or groups the authority and resources to make decisions, take action, and contribute to their success and the success of the organization.

Rewards

Rewards are the benefits, monetary or otherwise, given to individuals or groups for their performance or for achieving specific goals, intended to motivate and reinforce desired behaviors.

Decisions

The act of making choices or conclusions after considering different options or information.

Political Savvy

The skill of understanding and navigating complex social or organizational politics to achieve goals.