Analysts predict that a companys earning will grow at 30, Ask an Expert

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Analysts predict that a company's earning will grow at 30% per year for the next five years. After, earnings growth is expected to slow down to 6% a year and continue at that rate forever. The company's earnings are $2 million. What is the present value of all future earnings if the interest rate is 7% assuming all cash flows occur at the end of the year?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91672693

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