25. Perpetuities and annuities (S2.2, S2.3) If the rate of interest is 8% rather than 10%, how...

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25. Perpetuities and annuities (S2.2, S2.3) If the rate of interest is 8% rather than 10%, how much would you need to set aside to provide each of the following?

a. $1 billion at the end of each year in perpetuity.

b. A perpetuity that pays $1 billion at the end of the first year and that grows at 4% a year.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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