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4. A firm's current profits are $550,000. These profits are expected to grow indefinitely at a…

4. A firm's current profits are $550,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost offunds is 8 percent, determine the value of the firm .
a. The instant before it pays out current profits as dividends.

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

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