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3. Suppose the interest rate is 10 percent and the firm is expected to grow at a rate of 4 percent for the foreseeable future.
3. Suppose the interest rate is 10 percent and the firm is expected to grow at a rate of 4 percent for the foreseeable future. The firm's current profits are $200 million. a. What is the value of the firm (the present value of its current and future earnings)? b. What is the value of the firm immediately after it pays a dividend equal to its current profits
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The Economics Of The Environment
Authors: Peter Berck, Gloria Helfand
1st Edition
978-0321321664, 0321321669
