A firm's current profits are $700,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 5 percent, determine the value of the firm:
Instructions: Round your responses to 2 decimal places.
a. The instant before it pays out current profits as dividends.
$ million
b. The instant after it pays out current profits as dividends.
$ million