A perpetuity costs 100000 and pays 1000 per month starting


1. Ridiculousness, Inc., has sales of $43,800, costs of $22,700, depreciation expense of $2,100, and interest expense of $1,600. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

2. A perpetuity costs $100,000 and pays $1,000 per month, starting next month. What is the prevailing true annual interest rate?

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Financial Management: A perpetuity costs 100000 and pays 1000 per month starting
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