A firm's current profits are 13.5 million. All the products of the firm are at the maturity

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A firm's current profits are 13.5 million. All the products of the firm are at the maturity stage, and you expect that the profits to increase indefinitely at a constant annual rate of 3%. If the firm's opportunity cost of fund is 8%, what is the present value of the firm before it pays out current profits as dividends?

Answer: the present value of the firm = $__________ million

Posted Date: Jun 14, 2024 01:42 AM

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A firm's current profits are 13.5 million. All the products of the firm are at the maturity

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