Use the Following Information to Answer the Question(s) Below

question 31

Multiple Choice

Use the following information to answer the question(s) below:
-If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value in 2010 is closest to:

• A) 164,200
• B) 278,775
• C) 280,450
• D) 303,425
• E) 482,850

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Definitions:

Terminating Decimal

A decimal number that has a finite number of digits after the decimal point.

Decimal Equivalent

A numerical representation of a fraction where the denominator is a power of ten, expressing fractions in a decimal format.

Percent Equivalent

A value expressed as a percentage that represents the equivalence of two ratios or a fraction to a percentage.

Five-figure Accuracy

A level of precision in numerical or quantitative information that includes five significant digits.