Only typed answer and don't use chatgpt  A firm's current profits are $950,000. These profits are expected to grow indefinitely at a constant annual rate of 6 percent. If the firm's opportunity cost of funds is 8 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends.         $ million b. The instant after it pays out current profits as dividends.     $ million

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Chapter5: Business And Economic Forecasting
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A firm's current profits are $950,000. These profits are expected to grow indefinitely at a constant annual rate of 6 percent. If the firm's opportunity cost of funds is 8 percent, determine the value of the firm:

Instructions: Enter your responses rounded to two decimal places.

a. The instant before it pays out current profits as dividends.
   
    $ million

b. The instant after it pays out current profits as dividends.

    $ million

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