Question
How much would you be willing to pay for a perpetuity that paid a $20 annual payment yesterday, and keeps growing at 5.5% per year,
How much would you be willing to pay for a perpetuity that paid a $20 annual payment yesterday, and keeps growing at 5.5% per year, forever? Assume that you can borrow from the bank at a 10% interest rate compounded quarterly.
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
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