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An investment financial security is not expected to have any cash flows for the coming four years. at the end of year five, it is expected to have a cash flow of $972. that cash flow is expected to grow at a constant rate of 5.6% in perpetuity.

The required return on security is 10%. how much would you be willing to pay for that security today? Please show work and do not use Excel.

Financial Management, Finance

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