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A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity

A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm:

A. The instant before it pays out the current profits as dividends

$_____________Million

B. The instant it pays out current profits as dividends.

$_____________Million

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