The required return on this investment

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Track Software paid $5,000 in dividends in 2015. Suppose that an investor approached Stanley about buying 100% of his firm. If this investor believed that owning the company he could extract $5,000 per year in cash from the in perpetuity, what do you think the investor would be willing to pay for the if the required return on this investment is 10%?

Reference no: EM131359068

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