Question
Consider a growing perpetuity with constant growth rate g=3%. The perpetuity makes its first payment of $10 three years from new (i.e., at t=3). The
Consider a growing perpetuity with constant growth rate g=3%. The perpetuity makes its first payment of $10 three years from new (i.e., at t=3). The fair price of this asset at t=0 is $453.52. What is the implied discount rate?
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Money Talks Explaining How Money Really Works
Authors: Nina Bandelj ,Frederick F. Wherry ,Viviana A. Zelizer
1st Edition
0691202893, 978-0691202891
