1. A mine is for sale for $800,000. It is believed the mine will produce a profit of $250,000 the first year, but the profit will decline $25,000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return as a percentage would be earned on the mine?
2. How do for-profit and not-for-profit hospitals affect physicians, patients, and insurance companies?
3. What is the difference between the book value and market capitalization of a company? What is the relationship of each of these financial measures to a company’s earnings?