What is the value of a perpetual security that pays $1,200 per month forever? The...
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Accounting
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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