Illustrate what do think investor would be willing to pay

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Tract software paid $5000 in dividends in 2012. suppose an investor approached stanley about buying 100% of his firm. If this investor believed that by owning the company he could extract &5000 per year in cash from the company in perpetuity, what do think the investor would be willing to pay for the firm if the required return on the investment is 10%?

Reference no: EM13127379

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Illustrate what do think investor would be willing to pay : If this investor believed that by owning the company he could extract &5000 per year in cash from the company in perpetuity, Illustrate what do think the investor would be willing to pay for the firm if the required return on the investment is 10%..

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