Question
A pension fund is expected to produce a cash flow of $1,000 at the end of the upcoming year. This cash flow will grow at
A pension fund is expected to produce a cash flow of $1,000 at the end of the upcoming year. This cash flow will grow at a rate of 10% for five years and then at the rate of 7% indefinitely. Assume the annual interest rate for pension related investments is 12%.
1) What is the value of the pension fund?
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The Handbook Of The Economics Of Corporate Governance Volume 1
Authors: Benjamin Hermalin , Michael Weisbach
1st Edition
0444635300,0444635408
