A business retains 79% of its customers from one year to the next. If the business...
A business retains 79% of its customers from one year to the next. If the business uses a 11% discount rate, calculate the margin multiple. Rounding: 2 decimal places.
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Homework Answers
Margin multiple = r/(1+i-r)
r = retention rate
i = discount rate
Margin multiple = 0.79 /(1+0.11-0.79) = 2.47
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