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Suppose that a company will start generating cash flows in 2 years (year of the first payout different from zero). The growth rate of the
Suppose that a company will start generating cash flows in 2 years (year of the first payout different from zero). The growth rate of the cash flows will be 4%. The rate of return is 8.1%. If the present value of the firm is 25M (value today, at year 0), what will be the value of the first payout different from zero (the cash flow at year 2)?
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