You are considering investing in a high end retail store located on South Beach. The store has
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You are considering investing in a high end retail store located on South Beach. The store has a 10 year lease, which implies that it will remain in business for the next 10 years. It produced annual cash flows of $420,000 (after all expenses were deducted), and the discount rate to value similar businesses is 10%. Based on this information, what is the estimated value of the store?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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