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Sport L&K Company produces annual cash flows of $798 dollars and is expected to exist forever. The company is currently financed with 50 percent equity.

Sport L&K Company produces annual cash flows of $798 dollars and is expected to exist forever. The company is currently financed with 50 percent equity. Your analysis tells you that the appropriate discount rates are 10.87 percent for the cash flows, and 5.04 percent for the debt. You currently own 10 percent of the shares.

Assume that all conditions identified by the M&M Proposition 1 apply.

How much are your cash flows today?

Round the answer to two decimals. Please enter the answer in thousands.

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