You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year for the next five y

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You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year for the next five y

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You Are Running A Hot Internet Company Analysts Predict That Its Earnings Will Grow At 20 Per Year For The Next Five Y 1
You Are Running A Hot Internet Company Analysts Predict That Its Earnings Will Grow At 20 Per Year For The Next Five Y 1 (80.16 KiB) Viewed 54 times
You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 5% per year and continue at that level forever. Your company has just announced earnings of $1 million. What is the present value of all future earnings if the interest rate is 9%? (Assume all cash flows occur at the end of the year.) www The present value is $ million. (Round to two decimal places.)
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