Suppose the interest rate is 6 percent, the expected growth rate of the firm is 3 percent, and the firm is expected to continue forever. If current profits are $1,200, what is the value of the firm?

Recall the Application. The change in demand for cigarettes resulting from the decrease in taxes would normally create, ceteris paribus

A) a decrease in their quantity supplied. B) a decrease in their supply. C) an increase in their supply. D) an increase in their quantity supplied.

An advantage of the partnership form of business organization is

A) its limited liability. B) its limited access to capital, thus reducing the possible size of debt. C) the ability of its owners to specialize. D) that it is difficult to start up, because a lot of thought has to go into the establishment of the firm.