What is the equation for the PV of a growing perpetuity with a payment of C one
Question:
What is the equation for the PV of a growing perpetuity with a payment of C one period from today if the payments grow by C each period?
PerpetuityPerpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...
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To answer this we can diagram the perpetuity cash fl...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
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