A firm's current profits are $1,100,000. These profits are expected to grow indefinitely at a constant annual rate of 2 percent. If the firm's opportunity cost of funds is 4.5 percent, determine the value of the firm:

Instructions:Enteryour responses rounded to two decimal places.

a. The instant before it pays out current profits as dividends.

$million

b. The instant after it pays out current profits as dividends.

$million