After that growth will increase to 8 per year forever if
Recruiting, Inc. paid a 2 dividends last year. It is expected to grow at only 4% this year, due to heavy funding needs. After that, growth will increase to 8% per year forever. If owners need to earn 16%, what is a fair value?
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compute the future value in year 7 of a 4000 deposit in year 1 and another 3500 deposit at the end of year 4 using a 8
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