Determine the present value of a perpetuity

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Question - Describe what is meant by a perpetuity and how the time value of money concept applies to perpetuities. What is the simple formula used to determine the present value of a perpetuity? What type of security might use a perpetuity calculation? Can you provide an example?

Reference no: EM133004757

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Determine the present value of a perpetuity : What is the simple formula used to determine the present value of a perpetuity? What type of security might use a perpetuity calculation
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