Question
Jason buys a consol (perpetual bond) that pays a fixed cash flow of $750,000 each year, forever, starting at the end of this year. If
Jason buys a consol (perpetual bond) that pays a fixed cash flow of $750,000 each year, forever, starting at the end of this year. If the current market rate is 12.5%, what is the PV of the cash flows?
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Get StartedRecommended Textbook for
Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
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