You are thinking of buying 5 acres of land for $120,000. The land will be worth $130,000

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You are thinking of buying 5 acres of land for $120,000. The land will be worth $130,000 in three years. Should you buy the land if r = 0.10?

If someone buys a share of Vodafone stock today, he will be able to sell it in 2 years for $1000. He will receive a $30 dividend at the end of each of those 2 years.If the prevailing interest rate is 15%.

What is the value of a share of Vodafone stock today?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: Apr 03, 2023 01:29 AM

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You are thinking of buying 5 acres of land for $120,000. The land will be worth $130,000

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Expert Answer:

For the first question we can use the present value formula to determine whether it is worth ... View the full answer

Fundamentals of Corporate Finance

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