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Which of the following are correct assumptions and conditions of the growing perpetuity present value formula? I. The first periodic cash flow (or payment) occurs
Which of the following are correct assumptions and conditions of the growing perpetuity present value formula?
I. The first periodic cash flow (or payment) occurs today.
II. g can be higher or lower than r.
III. g needs to be less than r.
IV. The number of time periods is finite.
a. I and III only
b. I and II only
c. III only
d. I, II and IV only
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