Which of the following is not a necessary assumption underlying the growing perp

Question

Which of the following is not a necessary assumption underlying the growing perpetuity formula?

The investor will remain invested in the investment forever.

The required rate of return is greater than the expected growth rate of the cash flows.

The cash flows will grow at a constant rate indefinitely.

All of the above are necessary assumptions underlying the growing perpetuity formula.

The investor will remain invested in the investment forever.

The required rate of return is greater than the expected growth rate of the cash flows.

The cash flows will grow at a constant rate indefinitely.

All of the above are necessary assumptions underlying the growing perpetuity formula.

Explanation / Answer

All of the above are necessary assumptions underlying the growing perpetuity formula.

All of the above are necessary assumptions underlying the growing perpetuity formula.

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