A firm's current profits are $$550,000.$ These profits are expected to grow indefinitely at a constant annual rate of $3$ percent. If the firm's

opportunity cost of funds is $5$ percent, determine the value of the firm:

Instructions: Enter your responses rounded to two decimal places.

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

$

$x$ million

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

$ million