You are running a hot Internet company. Analysts predict that its earnings will grow at...
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You are running a hot Internet company. Analysts predict that its earnings will grow at 30 % per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 6 % per year and continue at that level forever. Your company has just announced earnings of $ 5 million. What is the present value of all future earnings if the interest rate is 9%?
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