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You are running a hot Internet companyAnalysts predict that its earnings will grow at 30% per year for the next five years. After that, as
You are running a hot Internet companyAnalysts predict that its earnings will grow at 30% per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 4% per year and continue at that level forever. Your company has just announced earnings of $4 million. what is the present value of all future earnings if the interest rate is 8%? (Assume cash flow ms occur at the end of the year)
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