You are given a following growing perpetuity with quarterly payments: It pays $30 at the end of

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You are given a following growing perpetuity with quarterly payments:

It pays $30 at the end of the first quarter. After that the payment grows at 1.500% per quarter, forever. The annual interest rate is a constant effective 12% per year.

What is the PV of this growing perpetuity at time t=0?

(Hint: You need to first compute quarterly interest rate using the effective annual rate.)

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Nov 19, 2023 05:08 AM

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You are given a following growing perpetuity with quarterly payments: It pays $30 at the end of

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Principles of Finance

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