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You are trying to value a company which is going to pay out a monthly cash flow of $ 1 0 0 , 0 0

You are trying to value a company which is going to pay out a monthly cash flow of $100,000 to
its shareholders tomorrow. You expect the company to continue making that payout forever,
and expect that amount to exhibit a 1% monthly growth rate. What would be the value of the
company today, if you believe the appropriate discount rate for such investment is 18% per
year? Assume the tax rate on corporate payouts is zero.

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