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NEW QUESTION: 1
Which of the following securities is commonly valued as a perpetuity? Further, which of the following best describes the equation used to value this security?
A. Common stock; {P0 = [d1 / g]}
B. Preferred stock; {P0 = [(d1 / k) +g]}
C. Zero coupon bond; {P0 = [Face value / (1 + k)