Question
At a discount rate of 8.50 8.50 %, find the present value of a perpetual payment of $ 1 comma 000 1,000 per year. If
At a discount rate of 8.50
8.50%, find the present value of a perpetual payment of $1 comma 000
1,000 per year. If the discount rate were lowered to 4.25
4.25%, half the initialrate, what would be the value of theperpetuity?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
