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ABC investment bank introduced a new financial instrument Genzyme. Investors expect Genzyme to provide zero net cashflows for the next 5 years. In the 6
ABC investment bank introduced a new financial instrument Genzyme. Investors expect Genzyme to provide zero net cashflows for the next years. In the th year, Genzyme is expected to have cashflows of Rs million, which is then expected to grow at a constant rate of forever. If investors require a rate of return, what is the current value of Genzyme? Assume all cashflows occur at the end of the year.
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