Question: is this true or false? A growing perpetuity must have a growth rate smaller than the discount rate for its present value to be computable.
is this true or false?
A growing perpetuity must have a growth rate smaller than the discount rate for its present value to be computable.
A growing annuity cannot have a growth rate equal to the discount rate for its present value to be computable.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
