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A firm's current profits are $850,000. 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 $850,000. 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: Find: The instant before it pays out current profits as dividends.
**I got 306,000,000 but it keeps saying im wrong please help this is beyond frustrating
I used the PV firm formula: 850,000*((1+0.08)/(0.08-0.05)
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