Analysts predict that its earnings will grow at 30 per year, Ask an Expert

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Analysts predict that its earnings will grow at 30% per year for the next 5 years. After that, as competition increases, earnings growth is expected to slow to 5% per year and continue at that level forever. Your company has just announced earnings of $1 million. What is the present value of all future earnings if the interest rate is 7%? (Cash flows occur at the end of the year)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91529164

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