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Given an effective annual interest rate of 1 0 % , what is the value at end of year 5 of a perpetual stream of

Given an effective annual interest rate of 10%, what is the value at end of year 5 of a
perpetual stream of $120 annual dividends that begins in 9 years?
a) $1200
b) $819.16
c) $901.58
d) $503.86
e) There is not enough information to solve this problem.

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