A firms current profits are 900000 these profits are


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.

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Macroeconomics: A firms current profits are 900000 these profits are
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