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ABS Corp. is expected to generate net income of $50 million next year and will pay $50 million in after-tax interest expense next year. The

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ABS Corp. is expected to generate net income of $50 million next year and will pay $50 million in after-tax interest expense next year. The company is expected to reinvest 80% of its after-tax operating earnings and will have a return on capital (ROC) equal to 10% in perpetuity. If the weighted- average cost of capital for ABS Corp. is 10% what is today's present value of the form? O $50 billion. O $10 billion. O $5 billion. O $1 billion

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