What is dividend discount model

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1. Suppose a firm buys and asset, depreciates it over its 10-year MACRS life, and then sells it for $100,000 15 years from the time it had bought it. Without performing any calculations, describe the tax consequences related to the assets purchase, depreciation, and sale.

2. What is a Dividend Discount Model? When to use it and how to apply it?

3. Discuss three reasons for why foreign buyers pay higher premiums for U.S. based target companies than U.S. buyers pay for U.S. targets? Please discuss in detail.

Reference no: EM131866142

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