Question
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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