Delta software earned 10 million this year suppose


Delta Software earned $10 million this year. Suppose thegrowthrate of Delta's profits and the interest rate are bothconstant andDelta will be in business forever. Determine the value of Delta Software when

a. The interest rate is 10 percent and profits grow by 4 percentperyear.

b. The interest rate is 10 percent and profits grow by 0 percentperyear.

c. The interest rate is 10 percent and profits decline by 4percentper year.

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Econometrics: Delta software earned 10 million this year suppose
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