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A firm's current profits are $1, 200,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's

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A firm's current profits are $1, 200,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity cost of funds is 8 percent, determine the value of the firm: a. The instant before it pays out current profits as dividends b. The instant after it pays out current profits as dividends

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