Question
You will receive a 10-year growing annuity. You will receive your first payment of $1.000 today. Your annuity will grow at 10% after that.
You will receive a 10-year growing annuity. You will receive your first payment of $1.000 today. Your annuity will grow at 10% after that. Your required rate of return is 10%. What is the present value (PVO) of this growing annuity?
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
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