HELP WITH FINANCE GROWING PERPETUITIES?

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HELP WITH FINANCE GROWING PERPETUITIES?

Postby troy » Thu Oct 28, 2010 11:20 am

Can someone help me with this problem:

A company's earnings will grow at 10% per year for the next 5 years. After that, earnings growth will slow to 4% each year forever. The company has earnings of 3 million. What is the present value of all future earnings if the interest rate is 7%.
troy
 
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