Value of the firm under two-period perfect certainty model

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Assume that you are the only owner of a firm. The firm announces to invest $1,889 today at 26% and pays dividends of the remaining $496. Average rate of return from the market is 13%. If you want to consume $723 now, how much would be the value of the firm under two-period perfect certainty model?

Reference no: EM131004089

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