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A firm's current profits

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solution


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Problem 01-04 (Algo);A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm;Instructions: Round your responses to 2 decimal places.;a. The instant before it pays out current profits as dividends.;$ million;b. The instant after it pays out current profits as dividends.;$ million Min Pages: 1;Level of Detail: Show all work;Other Requirements: I have provided the solution example that the professor gave and worked it out in the same order, however when I submit my answer (attached) in the Connect Online Econ site, it comes back incorrect.

 

Paper#15390 | Written in 18-Jul-2015

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