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Assume that a firm has annual earnings of $7/share which are fully distributed to shareholders at the end of each year and which are

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Assume that a firm has annual earnings of $7/share which are fully distributed to shareholders at the end of each year and which are expected to continue forever and grow at a constant rate of 3%. (Ignore tax effects.) Assume that the interest rate you expect to receive on an alternative investment of equal risk is 7%. What is the value of the firm based on the expected cash flow? Write your answer to the nearest dollar (XXX).

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