Solution-What are saying about the implied return

What are saying about the implied return

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Reference no: EM132954563

Assume you sell for $100,000 a 10 percent ownership stake in a future payment one year from now of $1.5 million.

Problem 1: What are you saying about the implied return for the 10 percent owner?

Problem 2: What is the present value of the entire $1.5 million, using the implied return from Part A?

Problem 3: What is 10 percent of the value determined in Part B?

Problem 4: Does it matter whether you grow the $100,000 at 50 percent to $150,000 and note it is 10 percent of $1.5 million, or discount the $1.5 million at 50 percent to get $1 million and note that $100,000 is 10 percent of this present value?

Reference no: EM132954563

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What are saying about the implied return

Reference no: EM132954563

Reference no: EM132954563

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