What is the growth rate, If i invest the entire 20 million

What is the growth rate

Reference no: EM13287672

Perpetuity and growth rate: 20million inheritence at a discount rate of 5%. I found a perpetuity investment that promises an intial payout of 2.0% at the end of the first year and subsequent payments that grow each year. If i invest the entire 20 million in this pertpetuity what is the growth rate that i will need to break even?

a)1%
b)2%
c)3%
d)4%

Reference no: EM13287672

Questions Cloud

What is the clinics average net float : On a typical day, Park Place Clinic writes $1,000 in checks. It generally takes four days for those checks to clear. Each day the clinic typically receives $1,000 in checks that take three days to clear. What is the clinics average net float?

Find what range of integers can be stored in the computer : A computer has a word length of 8 bits (including) sign. If2's complement is used to represent negative numbers, what range of integers can be stored in the computer If 1's complement is used

At what price should the annual payment bond sell : Neither bond is callable. At what price should the annual payment bond sell?

Analyzed by measuring the absorbance of a copper complex : A sample of copper was pretreated and diluted to 500mL and portions of this solution were analyzed by measuring the absorbance of a copper (I) complex of 1, 20 phenanthroline using a standard addition technique.

What is the growth rate : If i invest the entire 20 million in this pertpetuity what is the growth rate that i will need to break even?

Calculate the price of a share of the company common stock : Calculate the price of a share of the company's common stock. Round to two decimal places. Please show step by step.

Draw constellation pattern for modern that uses eight phase : Draw a constellation pattern for a modern that uses eight equally-spaced phase angles and equally spaced amplitude levels. If the modern operates at 4800 baud, what is its bit rate.

Presume that at low ph the principle species in solution : Assuming that at low pH the principle species in solution is HA and at high pH the principle species is A-, calculate the pKa of the indicator.

Determine the speed in the second segment : A 1.0-cm-diameter pipe widens to 2.0 cm, then narrows to 0.5 cm. Liquid flows through the first segment at a speed of 4.0m/s. What is the speed in the second segment

User Account

All Pages