A Firm Will Have Constant Profits of $100,000 Per Year

question 123

Multiple Choice

A firm will have constant profits of $100,000 per year for the next four years,and the interest rate is 6 percent.Assuming these profits are realized at the end of each year,what is the present value of these future profits?

• A) $325,816
• B) $376,741
• C) $400,000
• D) $346,511

Identify and practice using components of a wiki, such as the Sandbox.

Understand the role and value of Twitter and other microblogs in business communication.

Master the use of hashtags and their importance in microblogging.

Acknowledge the social networking features of microblogs and their advantages for businesses.

---

Definitions:

Investment Banks

Financial institutions that provide services such as underwriting, acting as intermediaries in mergers and acquisitions, and providing financial advisory services to companies.

Direct Transfer

A method of transferring assets or funds from one account to another without any intermediary processing steps.

Secondary Market

Sales of existing securities between investors. Compare with Primary market.

Stock

An ownership share in a corporation, representing a claim on part of the company's assets and earnings.