A Perpetuity has a cash flow of ₹ 625 and a required rate of return of 8%. If the cash flow is expected to grow at a constant rate of 4% per year,…
CA Foundation · Quantitative Aptitude · PYQS · September 2024
A Perpetuity has a cash flow of ₹ 625 and a required rate of return of 8%. If the cash flow is expected to grow at a constant rate of 4% per year, then the intrinsic value of this perpetuity (present value of growing perpetuity) is :
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. ₹ 15,625
Topics: Part-A: Business Mathematics
Related Questions in this Topic
- lim x→0 log(1+x) / x is equal to ______
- The series 1 2 + 2 2 + 3 2 + 4 2 + ... + 10 2 is equal to
- Which term of the series 3, √3, 1, 1 / √3 , ...... is 1 / 243 ?
- Following are the marks of 10 students:82, 79, 56, 79, 85, 95, 55, 72, 70, 66. Find coefficient of range.
- Two variables x and y are related by 5x + 6y + 9 = 0 and x = 6, then y is