Question
First, algebraically show that PV=CF/r is simply a special case of PV=CF/r-g. That is algebraically showing that the present value of a no-growth perpetuity is
First, algebraically show that PV=CF/r is simply a special case of PV=CF/r-g. That is algebraically showing that the present value of a no-growth perpetuity is simply a special case of the present value of a constant growth perpetuity. Second, what does this tell us about growth in CF? Teach me the concepts.
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
