Calculate the present value of $800 received at the beginning of year 1, $400 received at the beginning of year 2, and $700 received at the beginning of year 3, assuming an opportunity cost of 9 percent
What will be an ideal response?
PV = 800 + 400(1.09 ) + 700(1.09 )2 = $1,756.15
Business
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Direct competitors have little impact on a new product or service during its introductory phase
Indicate whether the statement is true or false
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The required rate of return on the Cosmos Corporation's common stock is 10%, the current real rate of return in the market is 1%, and the inflation rate is 3%. In this case, the risk premium associated with Cosmos stock is
A) 5%. B) 6%. C) 7%. D) 8%.
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