Question
What is the present value of growing perpetuity that makes the first payment of $100 in one year from today with annual payments growing thereafter
What is the present value of growing perpetuity that makes the first payment of $100 in one year from today with annual payments growing thereafter at a rate of 10% per year? Assume an interest rate of 8% (EAR).
a) $0
b) - $5,000
c) $5,000
d) $100
e) None of the above
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Restructuring And Innovation In Banking
Authors: Claudio Scardovi
1st Edition
331940203X, 978-3319402031
