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Which of the following statements is true? a) Annuities do not have constant payments b) All else being equal, a perpetuity with a smaller starting
Which of the following statements is true?
a) Annuities do not have constant payments
b) All else being equal, a perpetuity with a smaller starting payment will have a lower PV.
c) The growth rate of a perpetuity is used to discount the cashflows
d) A growing perpetuity is a stream of constant cashflows that never end.
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