Determine the value of the firm

Reference no: EM13694639

A firm's current profits are $750,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost of funds is 8.5 percent, determine the value of the firm:

Round 2 decimal places (in millions)

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

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

Reference no: EM13694639

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