Question: Here table [ [ PV 1 - 3 , 3 5 7 . 9 3 million,,,, ] , [ PV 4 - 6 ,
HeretablePV million,,,,PV million,,TPV$millionPV million,$million,, is an example of the most common use of the growing perpetuity model called pro forma Your firm just finished the year, in which it had cash earnings of $ million. Excluding this amount, you want to determine the value of the firm. You forecast your firm to have a quick growth phase for years, in which is grows at rate of per annum ending year with $ up to ending year with Your firm's gorwth then slows down to per annum for the next years ending year with $etc Finally, beginning in year you expect it to settle into its longterm growth rate of per annum. You also expect your cost of capital to be in your growth pahse, in your growth phase, and in your growth phase. Excluding the $ million, what do you think your firm is worth today?
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