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Water, Inc., expects to sell 3.7 million bottles of drinkingwater each year in perpetuity. This year each bottle will sell for$1.46 in real terms and will cost $.82 in real terms. Sales incomeand costs occur at year-end. Revenues will rise at a real rate of1.8 percent annually, while real costs will rise at a real rate of.8 percent annually. The real discount rate is 5 percent. Thecorporate tax rate is 23 percent.What is the company worth today? (Do not round intermediatecalculations and enter your answer in dollars, not millions,rounded to the nearest whole number, e.g., 1,234,567.)
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