Which of These Are Basic Assumptions of the Growing Perpetuity

question 24

Multiple Choice

Which of these are basic assumptions of the growing perpetuity present value formula?
I.The cash flow is the Time 0 cash flow.
II.The time periods are regular and discrete.
III.g < r
IV.The number of time periods is finite.

• A)I and II only
• B)II and III only
• C)I,II,and III only
• D)II,III,and IV only
• E)I,II,III,and IV

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