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Potvin Potvin
wrote...
Posts: 1260
Rep: 1 0
7 years ago
You are offered a perpetuity that will pay you $18,000 per year starting in one year. The seller wants you to pay $300,000 for the perpetuity. If you buy it at that price, what return will you earn?
A) 6%
B) 5%
C) 7%
D) 8%
E) 9%
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 1st
Authors:
Read 446 times
4 Replies
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Answer verified by a subject expert
BlimpBlimp
wrote...
Posts: 499
7 years ago Edited: 9 months ago, bio_man
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More solutions for this book are available here
1
Pol. Sci. Major
Minoring in Business
Columbia University Sophomore

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Potvin Author
wrote...
7 years ago
Smiling Face with Open Mouth wow
Anonymous
wrote...
9 months ago
Help! The answer is missing an explanation...
Anonymous
wrote...
9 months ago
Solution is now provided Slight Smile
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