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Which of the Following Statements Regarding Growing Perpetuities Is FALSE

Question 40

Multiple Choice

Which of the following statements regarding growing perpetuities is FALSE?


A) We assume that r < g for a growing perpetuity.
B) PV of a growing perpetuity = Which of the following statements regarding growing perpetuities is FALSE? A) We assume that r < g for a growing perpetuity. B) PV of a growing perpetuity = C) To find the value of a growing perpetuity one cash flow at a time would take forever. D) A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.
C) To find the value of a growing perpetuity one cash flow at a time would take forever.
D) A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.

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