Suppose you want to buy a stock in a firm called Infinity the firm states that they expect to pay you $1 per year forever. What is a fair price for this stock if an investment in similar firms return 5% per year? (The computation is based on time value of money computations we learned in Chapter 5. Hint: Is this a perpetuity, if so how would you value it (what is the payment and what is the interest rate)?