A financial analyst is treating a cash flow stream as a perpetuity. The present value of the perpetuity will __________ (increase, decrease, or not change) if the interest rate increases, and will ___________ (increase, decrease, or not change) if the growth rate increases.

A financial analyst is treating a cash flow stream as a perpetuity. The present value of the perpetuity will (increase, decrease, or not change) if the interest rate increases, and will _ (increase, decrease, or not change) if the growth rate increases.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 3QTD

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