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A firm has an operating profit of $120 million, pays interest of $20 million, and pays corporate tax at 30%. All cash flows will grow

A firm has an operating profit of $120 million, pays interest of $20 million, and pays corporate tax at 30%. All cash flows will grow by 3% per year in perpetuity. The firm's equity beta is 1.0, the market risk premium is 6% and the risk-free rate is 5%. What is the value of equity assuming no reinvestment needs and no depreciation?

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