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Suppose you invest in a perpetuity that pays $400 per year forever. You are supposed to receive the first payment one year from today. Based
Suppose you invest in a perpetuity that pays $400 per year forever. You are supposed to receive the first payment one year from today. Based on the riskiness of the perpetuity cash flows, you believe 10% is an appropriate rate of return. Calculate the price today of this perpetuity.
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