Which of the following is true about perpetuities?
A) All else equal, the value of a perpetuity is higher when the periodic cash flow is higher.
B) If two perpetuities have the same present value and the same interest rate, they must have the same cash flows.
C) All else equal, the value of a perpetuity is higher when the interest rate is lower.
D) All of the above are true statements.
Correct Answer:
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