You Own 25% of Unique Vacations,Inc

question 33

Multiple Choice

You own 25% of Unique Vacations,Inc. You have decided to retire and want to sell your shares in this closely held,all equity firm. The other shareholders have agreed to have the firm borrow $1.5 million to purchase your 1,000 shares of stock. What is the total value of this firm today if you ignore taxes?

• A) $4.8 million
• B) $5.1 million
• C) $5.4 million
• D) $5.7 million
• E) $6.0 million

---

Definitions:

Government Spending

Expenditures by the government sector including spending on goods and services, public projects, and social services, which can influence a country's economy.

U.S. Economy

refers to the economic system of the United States, characterized by a mixed economy that includes private enterprise alongside significant government regulation and programs.

Real Federal Spending

Government expenditure adjusted for inflation, reflecting the actual value of goods and services purchased by the federal government.

Inflation

The rate of growth in the general price level of goods and services, which decreases the power of purchase.