How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask linda_us Your Own Question
linda_us
linda_us, Master's Degree
Category: Business and Finance Homework
Satisfied Customers: 7291
Experience:  A tutor for Business, Finance, Accounts and other related topics.
19873544
Type Your Business and Finance Homework Question Here...
linda_us is online now
A new question is answered every 9 seconds

A firms current profits are $550,000. The se profits are

Resolved Question:

A firm’s current profits are $550,000. The se profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm’s opportunity cost of funds 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 profits as dividends.
Submitted: 5 years ago.
Category: Business and Finance Homework
Expert:  linda_us replied 5 years ago.
Are we given and dividend amount.

Regards

Linda
Customer: replied 5 years ago.

Hi Linda -

 

No dividend amount was given.

Expert:  linda_us replied 5 years ago.
linda_us and other Business and Finance Homework Specialists are ready to help you