Question: .A Hedging and Diversification 1. The CEO's company currently generates earnings (free cash flows) of $2 million a year, which she believes are growing at

.A Hedging and Diversification 1. The CEO's company currently generates earnings ("free cash flows") of $2 million a year, which she believes are growing at an annual rate of 3% and will continue to do so indefinitely. Her firm's cost of capital is 14% (it is 100% equity financed at the moment). What is the value of the firm currently

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