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A firm's current profits




A firm's current profits are $750,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost of funds is 8.5 percent, determine the value of the firm: Round your responses to 2 decimal places - in million;a. The instant before it pays out current profits as dividends;b. The instant after it pays out current profits as dividends.Level of Detail: Only answer needed;Other Requirements: For some reason numbers just not working out for me. Should take maximum 5 minutes to do with example attached


Paper#15396 | Written in 18-Jul-2015

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