Which of the Following Statements Regarding Growing Perpetuities Is FALSE $$\text { D) PV of a growing perpetuity } = \frac { C } { r - g }$$

question 55

Multiple Choice

Which of the following statements regarding growing perpetuities is FALSE?

• A) We assume that r < g for a growing perpetuity.
• B) 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.
• \[\text { D) PV of a growing perpetuity } = \frac { C } { r - g }\]

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Definitions:

Current Paths

Paths followed by electrical current in a circuit.

Series Circuit

An electrical circuit in which components are connected end-to-end such that current flows through each component in turn without branching.

Current Flow

The passage of electrons through a conductive material, powering electrical devices.

Combination Circuits

Electrical circuits that contain both series and parallel connections within the same circuit.