What is the maximum price an investor

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Reference no: EM131813550

A 40 year matuirty financial assest is expected to have a cash flow of $320 one year from today. the cash flow is expected to grow at a constant rate of 8% per year for its life. The RRR on the asset is 15%. what is the maximum price an investor should be willing for pay for this today. also explain what kind of problem this is and the formula used.

Reference no: EM131813550

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