The present value of a perpetuity that pays X 1 the first year and then grows at
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The present value of a perpetuity that pays X1 the first year and then grows at a rate g each year is:
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PV - X(1+g)-1 (1+r)t t=1 Show that this simplifies to X1 PV T-9
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Related Book For
Lectures On Corporate Finance
ISBN: 9789812568991
2nd Edition
Authors: Peter L Bossaerts, Bernt Arne Odegaard
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