Which of the Following Statements Regarding Growing Perpetuities Is FALSE

question 56

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 =
• 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.