Question 4
What is the present value of a perpetuity that pays Rs 800 next year, grows at a rate of 2% per year thereafter and faces a cost of capital of 10% per year?
Rs 40,000
Rs 10,000
Rs 8,000
Rs 4,000
Question 4: What is the present value of a perpetuity that pays Rs 80…
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Correct answer
Rs 10,000
Question 4 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 23 Feb 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 23 Feb 2025). It carries 4 marks.
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