Assume your firm is expected to grow at 3 percent for the


Question: Assume your firm is expected to grow at 3 percent for the foreseeable future. Given that the interest rate is 5 percent, and that the firm's current profits are $50 million,

What is the value of the firm based on its current and future earnings?

What is the value of the firm given that you have paid a dividend that is equal to the firm's profits?

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Finance Basics: Assume your firm is expected to grow at 3 percent for the
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