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An all equity firm (i.e. no debt) it expected to produce cash flow in the amount of $110,000 in its first year of operation. Cash
An all equity firm (i.e. no debt) it expected to produce cash flow in the amount of $110,000 in its first year of operation. Cash flow is expected to grow at 1% for the forseeable future. If the firm's investors require 15% return, what is the Market Value of the Firm?
a. $111,100
b. $733,333
c. $785,714
d. Cannot calculate with given information
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