A firms current profits are 700000 these profits are, Ask an Expert

Economics

A firm's current profits are $700,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 5 percent, determine the value of the firm:

Instructions: Round your responses to 2 decimal places.

a. The instant before it pays out current profits as dividends.

$ million

b. The instant after it pays out current profits as dividends.

$ million

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707563

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