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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 ,

5. You are trying to value a company which is going to pay out a monthly cash flow of $100,000 to its shareholders tomorrow. You expect the company to continue making that payout forever, and expect that amount to exhibit a 1% monthly growth rate. What would be the value of the company today, if you believe the appropriate discount rate for such investment is 18% per year? Assume the tax rate on corporate payouts is zero.5. You are trying to value a company which is going to pay out a monthly cash flow of $100,000 to its shareholders tomorrow. You expect the company to continue making that payout forever, and expect that amount to exhibit a 1% monthly growth rate. What would be the value of the company today, if you believe the appropriate discount rate for such investment is 18% per year? Assume the tax rate on corporate payouts is zero.

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