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You have to value a company based on its expected future cash flows. Interest rates are currently 0.08. If this company expects income of $500 next year (at the end of year 0 or the beginning of the first year), growing at 0.02 each year until the end of the 10th year. Then, income growth is expected to slow to 0 forever-after. What is the value of this company today, in 1000s of dollars?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92793500

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