elise47
elise47
13.12.2019 • 
Business

Sparkling water, inc., expects to sell 3.7 million bottles of drinking water each year in perpetuity. this year each bottle will sell for $1.46 in real terms and will cost $.82 in real terms. sales income and costs occur at year-end. revenues will rise at a real rate of 1.7 percent annually, while real costs will rise at a real rate of .8 percent annually. the real discount rate is 5 percent. the corporate tax rate is 25 percent. what is the company worth today?

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