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You are running a hot Internet company. Analysts 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 3% 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 7%?? ?(Assume all cash flows occur at the end of the? year.)

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Financial Management, Finance

Category:- Financial Management
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