What is the market value of the firm

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Reference no: EM131327516

Consider a growing firm that produces cash of $10 million next year. The firm's cash flow growth rate is 15% per annum. The firm's cost of capital is 20%.

(a) What is the market value of this firm?

(b) What is the firm's P/E ratio if it has no debt?

Reference no: EM131327516

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