Afirm's current profits are $650,000. these profits are expected to grow indefinitely at a constant annual rate of 5 percent. if the firm's opportunity cost of funds is 7 percent, determine the value of the firm: round your responses to 2 decimal places. a. the instant before it pays out current profits as dividendsb. the instant after it pays out current profits as dividends.

before disrtibution of dividends: 34,125,000

                     after distribution:    33,475,000

Explanation:

we will calculate this using the gordon model for dividen grow but using the firm income asdividends instead:

income zero: 650,00

income next year: 650,000 x 1.05 = 682,500

return 7%

grow 5%

firm value: 34.125.000‬

once it distribute dividends, the equity will decrease by that ammount:

34,125,000 - 650,000 = 33,475,000

don't use it that much

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed