Assume that the forecast for the company in Problem 5 was such that at the end of

Question:

Assume that the forecast for the company in Problem 5 was such that at the end of the fifth year its growth was to decline linearly for four years to reach the steady state 6% growth rate. Assume that the payout ratio was constant at 30% until it was changed to 50% at the end of the ninth year. What is the value of the company?