Show that a firm with earnings of 10000 a year in
Show that a firm with earnings of $10,000 a year in perpetuity would be better off paying all earnings in dividends rather than investing 25% of its earnings (also in perpetuity) in projects earning 14% if its discount rate is 15%
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show that a firm with earnings of 10000 a year in perpetuity would be better off paying all earnings in dividends
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