Business, 19.07.2020 14:01, alexalvarez304

A certain companyʹs cash flows are expected to grow at a rate of 15% for the next eight years before tapering off to a constant growth rate of 6% forever. The current yearʹs cash flow is $50,000 (already paid). If the firmʹs cost of capital is 20%, what should its fair market value be? Round your answer to the nearest dollar.

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A certain companyʹs cash flows are expected to grow at a rate of 15% for the next eight years before...