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Q3. A growing perpetuity with a present value of $100,000 today yields quarterly cash flows that grows by 0.5% per quarter. If the required
Q3. A growing perpetuity with a present value of $100,000 today yields quarterly cash flows that grows by 0.5% per quarter. If the required return in APR is 8% and the first cash flow comes in one quarter from today. What is the value of the cash flow in the first quarter? [2 marks]
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