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What is the value of a perpetual security that pays $1,200 per month forever? The EAR is 14%. 112,500 110,000 109,301 109,091 111,574 What is

What is the value of a perpetual security that pays $1,200 per month forever? The EAR is 14%."

"112,500"

"110,000"

"109,301"

"109,091"

"111,574"

What is the value of a project that generates a cash flow of $50,000 in the first month, with the cash flows growing at 0.2% per month forever? The interest rate is 8.4%."

"10,000,000"

"11,111,111"

"9,090,909"

"9,999,999"

"10,101,010"

An investment generates a cash flow of $50,000 in the first month, with the cash flows growing at 0.3% per month forever. What is the monthly interest rate if the value of the investment is $7M?"

0.76%

0.88%

1.01%

1.18%

0.92%

Consider a growing perpetuity that makes annual payments and has a value of $200. The first payment of $9 will be made in a year. The interest rate is 7%. What is the expeced growth rate of the payments?

1.0%

2.0%

0.0%

2.5%

1.5%

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