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A firm's current profits are $800,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity
A firm's current profits are $800,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost of funds is 8 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. $ million b. The instant after it pays out current profits as dividends. $ million
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