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Assume that a firm has annual earnings of $7.5/share, which is expected to continue forever and grow at a constant rate of 2%. Also assume
Assume that a firm has annual earnings of $7.5/share, which is expected to continue forever and grow at a constant rate of 2%. Also assume that the interest rate you would receive on an alternative investment of equal risk is 10%.
What is the value of the firm based on the cash flow? (Round answer to 2 decimal points)
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