Determine the Future Value of a Target Venture Which Has

question 6

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 $20.00 per shares; 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

---

Definitions:

Optimization

The process of making something as effective or functional as possible.

Universal Principles of Management

Fundamental concepts and practices that are widely applied across various industries and organizations to effectively lead and manage teams.

Henry Fayol

A French engineer and scholar, recognized as one of the pioneers of modern management methodologies, noted for his development of a general theory of business administration.

Diversity

The inclusion of individuals from various backgrounds, beliefs, and cultures, contributing to a rich, multidimensional environment.