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A perpetuity-immediate pays 1500 per year. Alice receives the first 20 payments and Denise receives the remaining payments. Alice's share of the present value of
A perpetuity-immediate pays 1500 per year. Alice receives the first 20 payments and Denise receives the remaining payments. Alice's share of the present value of the original perpetuity is 30%. The annual effective rate of interest is a same constant for each year. Calculate the present value of the payments received by Denise?
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International Financial Reporting and Analysis
Authors: David Alexander, Anne Britton, Ann Jorissen
5th edition
978-1408032282, 1408032287, 978-1408075012
