A rental property is providing 13% rate of return. Next year's rent is expected to be $1.0 million and is expected to grow at 3% per year forever.

 1/(0.13+0.03)=$6.25... View the full answer

Using DDM, value of property =... View the full answer

It's geometric gradient where g is growth, and i is rate of return, A1 is the first payment. When the time... View the full answer

Here is the answer... View the full answer

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where g is growth, and i is rate of return, A1 is the first payment.
When the time of return is infinity/forever, this formula become
Pg = A1 [ 1 / (i-g)], if you want you can still use long...