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Computing the Present Value of a Growing Perpetuity Is Most

Question 28

Multiple Choice

Computing the present value of a growing perpetuity is most similar to computing the current value of which one of the following?


A) Non-dividend-paying stock
B) Stock with a constant dividend
C) Stock with irregular dividends
D) Stock with a constant-growth dividend
E) Stock with growing dividends for a limited period of time

Correct Answer:

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