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Determining the constant annual rate

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A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 2 percent. If the firm's opportunity cost of funds is 4 percent, determine the value of the firm:

Instructions: Show your work and Round your responses to 2 decimal places.

a.) the instant before it pays out current profits as dividends.

b.) the instant after it pays out current profits as dividends.

Reference no: EM131246615

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