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1 9 % rate of return on the proposed purchase. Because you are relatively uncertain about future cash flows, you decide to estimate the firm's
rate of return on the proposed purchase. Because you are relatively uncertain about future cash flows, you decide to estimate the firm's value using several possible assumptions about the growth rate of cash flows.
a What is the firm's value if cash flows are expected to grow at an annual rate of from now to infinity?
b What is the firm's value if cash flows are expected to grow at a constant annual rate of from now to infinity?
c What is the firm's value if cash flows are expected to grow at an annual rate of for the first years, followed by a constant annual rate of from year to infinity?
a The firm's value, if cash flows are expected to grow at an annual rate of from now to infinity, is $Round to the nearest cent.
Please solve with numbers, not words.
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