Question: Question 25 4 pts What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays

 Question 25 4 pts What is the difference in present value
between a perpetuity that pays $500 per year and an ordinary annuity

Question 25 4 pts What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays $500 per year for 25 years? Assume a discount rate of 7% and cash flows at the end of the period. (Enter your dollar answer as a number rounded to 2 decimal places. For example: $100.25 would be entered as 100.25). 4 pts D Question 21 If the interest rate on T Bills is 3% and the market risk premium is 10%, what is the CAPM-implied expected return on a stock with a beta of 1.4? (Enter your percentage answer as a number rounded to 2 decimal places. For example: 15.25% would be entered as 15.25)

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