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Chapter 7, Problem 7.16P

a.

Summary Introduction

To determine: The firm's value if cash flows are expected to grow at an annual rate of 0% from now to infinity.

b.

Summary Introduction

To determine: The firm's value if cash flows are expected to grow at a constant annual rate of 7% from now to infinity.

c.

Summary Introduction

To determine: The firm's value if cash flows are expected to grow at an annual rate of 12% for the first 2 years, followed by a constant annual rate of 7% from year 3 to infinity.

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Chapter 7 Solutions

Principles of Managerial Finance, Student Value Edition Plus MyLab Finance with Pearson eText - Access Card Package (15th Edition) (Pearson Series in Finance)

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