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Which of the following is true about perpetuities? All else equal, the present value of a perpetuity is higher when the periodic cash flow is
Which of the following is true about perpetuities?
All else equal, the present value of a perpetuity is higher when the periodic cash flow is higher. |
If two perpetuities have the same present value and the same interest rate, they must have the same cash flows. |
All else equal, the present value of a perpetuity is higher when the interest rate is lower. |
All of the above are true statements. |
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