Assuming that a company will remain a single entity into the foreseeable future. Based on the company's current profit of $3.25 billion (which has yet to be paid out to shareholders) and the long-term interest rate of 5.25% per year, determine the company's present value under the following annual profit growth scenarios:

(a)Annual profit growth rate of 8.5%. Show your steps and manual calculations.

(b)Annual profit growth rate of 3%. Show your steps and manual calculations.

(c)No annual profit growth. Clearly show your steps and manual calculations.

(d)Profits decline at an annual rate of 2.5%. Show your steps and calculations.

(e)What conclusions can you draw from this problem?