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Market value at risk of one of the events

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The General Construction Company (GCC) is expecting next year a cash flow from asset of $50 million that is expected to grow forever at 3 percent. Its cost of capital is 11 percent. The firm is exposed to the following risk:

There is a 60 percent chance that its growth rate drops tp 1 percent.

What is the market value at risk of each one of the events listed above?

Reference no: EM131360708

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