Multiple Choice
A growing perpetuity' with a first payment of $17,500 grows at a constant rate,g.If the present value of this perpetuity is $1,000,000,what is the growth rate of the cash flows,given that the interest rate is 6%?
A) 1.75%
B) 6%
C) 6.75%
D) 4.25%
E) 10.75%
Correct Answer:
Verified
Correct Answer:
Verified
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