In Practice Problem 31, if the free cash flow to equity grows at 8 percent for the first two years and then grows at 5 percent indefinitely, what is the market value of the firm now?

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Sales Cost of goods sold Depreciation Interest Income tax Dividends $1,550,000 350,000 400,000 150,000 260,000 300,000 500,000 10x Common shares outstanding P/EBITDA