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Two growing perpetuities has the same yield rate. the first one: a perpetuity-immediate, has an initial payment of 1000 one year from now. and each
Two growing perpetuities has the same yield rate. the first one: a perpetuity-immediate, has an initial payment of 1000 one year from now. and each subsequent annual payment increases by 100. The present value of this perpetuity is 10000. The second perpetuity, also a perpetuity-immediate- has a present value of 6000, an initial payment of 500 one year from now and each subsequent annual payment increases by g%. Find g. A. 8.05 B. 7.85 C. 7.75 D. 7.95 E. 8.15
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