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5 . You are trying to value a company which is going to pay out a monthly cash flow of $ 1 0 0 ,
You are trying to value a company which is going to pay out a monthly cash flow of $ to its shareholders tomorrow. You expect the company to continue making that payout forever, and expect that amount to exhibit a monthly growth rate. What would be the value of the company today, if you believe the appropriate discount rate for such investment is per year? Assume the tax rate on corporate payouts is zero You are trying to value a company which is going to pay out a monthly cash flow of $ to its shareholders tomorrow. You expect the company to continue making that payout forever, and expect that amount to exhibit a monthly growth rate. What would be the value of the company today, if you believe the appropriate discount rate for such investment is per year? Assume the tax rate on corporate payouts is zero.
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