The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company's many divisions will remain a single entity forever. The manager is concerned that. despite the fact that the rm's competitors are comparatively small, collectively their annual revenue growth has exceeded 50 percent over each of the last ve years. She has requested that the value projections be based on the rm's current prots of $3.2 billion (which have yet to be paid out to stockholders) and the average interest rate over the past 20 yea rs {6 percent) in each of the following prot growth scenarios: a. Prots grow at an annual rate of 9 percent. (This one is tricky.) . Instructions: Enter your responses rounded to two decimal places. b. Prots grow at an annual rate of 2 percent. |:| billion c. Profits grow at an annual rate of 0 percent. |:| billion d. Prots decline at an annual rate of4 percent. |:| billion A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 2 percent. If the firm's opportunity cost of funds is 4 percent, determine the value of the firm: Instructions: Enter your responses rounded to one decimal place. a. The instant before it pays out current profits as dividends. million b. The instant after it pays out current profits as dividends. million