Mathematics for FinancePYQ Sep 24Question 1564 of 422
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A Perpetuity has a cash flow of $625$ and a required rate of return of $8\%$. If the cash flow is expected to grow at a constant rate of $4\%$ per year, then the intrinsic value of this perpetuity (present value of growing perpetuity) is:

Options

A$15,000$
B$15,625$
C$14,280$
D$16,667$
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Correct Answer

Option b$15,625$

All Options:

  • A$15,000$
  • B$15,625$
  • C$14,280$
  • D$16,667$

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