Question: Question 2 0 1 pts Your lemonade stand located close to the university is expected to generate $ 2 5 , 0 0 0 next

Question 20
1 pts
Your lemonade stand located close to the university is expected to generate $25,000 next year, and cash flows will grow by 5% each subsequent year indefinitely. The required rate of return is 10%, and ROIC is 20%. After a few years of doing this business, you were able to more efficiently convert investments into profits, which increases your ROIC from 20% to 25%. You reinvest the same percentage in the business.
How does it affect the value of your lemonade stand?
increased by $125,000
increased by $5,000
decreased by $125,000
decreased by $25,000
Question 20 1 pts Your lemonade stand located close to the

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