What is the value of this firm continuing operations

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Reference no: EM131937780

1. A company just recorded a profit of $1,600,000. This profit is expected to grow at 4% for the foreseeable future. Investors require an 8.7% rate of return and the company has a book value of equity equal to $4,500,000.

What is the total valuation of this firm?

2. A company just recorded a profit of $1,600,000. This profit is expected to grow at 4% for the foreseeable future. Investors require an 8.7% rate of return and the company has a book value of equity equal to $4,500,000.

What is the value of this firm's continuing operations (PV of future cash flows associated with this firm)?

Reference no: EM131937780

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