A security pays an annual dividend of $1.9 forever. The appropriate discount rate is 3% per year.

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What is the present value of this security if the first payment is made one year from now?

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Intermediate Microeconomics

ISBN: 978-0393934243

8th edition

Authors: Hal R. Varian

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Posted Date: Jun 10, 2023 01:19 AM

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A security pays an annual dividend of $1.9 forever. The appropriate discount rate is 3% per year.

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To calculate the present value of the security we can use the formula for the p... View the full answer

Intermediate Microeconomics

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