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Suppose an interest rate is 10% and the firm is expected to grow at a rate of 5% for the foreseeable future. The firm's current

Suppose an interest rate is 10% and the firm is expected to grow at a rate of 5% for the foreseeable future. The firm's current profits are $100 million: What is the value of the firm ( the present value of its current and future earnings)? What is the value of the firm immediately after it pays a dividend equal to its current profit?

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