Exam Questions 15] = 7.606P. This must equal the value of the perpetuity for this to be a fair deal. This gives P = $81,754/7.606 = $10,749.

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15] = 7.606P. This must equal the value of the perpetuity for this to be a fair deal. This gives P = $81,754/7.606 = $10,749.

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15] = 7.606P. This must equal the value of the perpetuity for this to be a fair deal. This gives P = $81,754/7.606 = $10,749.

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Explanation/Reference:
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