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Suppose we are offered a Perpetuity Due with the following terms: we will receive $400 upfront. The growth rate of cash flow is 10% every
Suppose we are offered a Perpetuity Due with the following terms: we will receive $400 upfront. The growth rate of cash flow is 10% every year. The EAR is 20%. What is the present value of this perpetuity due? please explain every step. I know the answer but I dont understand a part of it.
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