Multiple Choice
You have the opportunity to buy a perpetuity which pays $1,000 annually.Your required rate of return on this investment is 15 percent.You should be essentially indifferent to buying or not buying the investment if it were offered at a price of
A) $5,000.00
B) $6,000.00
C) $6,666.67
D) $7,500.00
E) $8,728.50
Correct Answer:
Verified
Correct Answer:
Verified
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