Accurately defines a perpetuity

Assignment Help Financial Management
Reference no: EM131310902

Which one of the following accurately defines a perpetuity?

a- a limited number of equal payments paid in even time increments

b- payments of equal amounts that are paid irregularly but indefinitely

c- varying amounts that are paid at even intervals forever

d- unending equal payments paid at either equal or unequal time intervals

e- unending equal payments paid at either equal time intervals.

Reference no: EM131310902

Questions Cloud

How much did bill pay sam for the note : Jean borrows $1800 from Sam for 8 year(s) at 9.25% compounded quarterly. Then, 3 year(s) before maturity, Sam sells the note to Bill who discounts it based on 10.75% compounded monthly. How much did Bill pay Sam for the note?
Discounts it based on a bank discount rate : Jenn borrows $600 from Sue on February 14, 2020 for 18 months at 10.5% simple interest. Then, 3 months before maturity, Sue sells the note to B. Harmless who discounts it based on a bank discount rate of 14%. How much did B. Harmless pay Sue for the ..
Mentioned for measuring output in the ?nancial sector : What are two methods Doyle broadly mentioned for measuring output in the ?nancial sector? What assumptions must be made about the opportunity costs of various participants in the market in order to derive each? Which measure does Doyle prefer? Why do..
Why are constructive dialogue-changing strategic direction : Why are constructive dialogue and/or changing strategic direction more difficult for a family business than other businesses, even though families are supposed to have closer relationships? Support your response with empirical evidence.
Accurately defines a perpetuity : Which one of the following accurately defines a perpetuity?
Odd dividend policy-company has just paid dividend : Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $10.35 per share and has announced that it will increase the dividend by $9.50 per share for each of the next four years, and then never pay another dividend. If you..
Valuing bonds-what is current price of the bond : Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon r..
What is the amount of accounts payable : The assets of Crane Industries consist of current assets and net plant and equipment. The company has total assets of $3.5M and net plant and equipment equals $2.25M. The firm only finances with debt and common equity. What is the balance of current ..
What is the firms total value and current price per share : Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is ..

Reviews

Write a Review

Financial Management Questions & Answers

  Regarding common stock

Which of the following is NOT true regarding common stock?

  The discount rate is referred

The discount rate is referred to by all of the following alternative names except the.

  What must coupon rate be on these bonds

DMA Corporation has bonds on the market with 11.5 years to maturity, a YTM of 7.2 percent, and a current price of $1,054. The bonds make semi annual payments and have a par value of $1,000. What must the coupon rate be on these bonds?

  Floating rate cds differ from regular cds

Floating rate CDs differ from regular CDs in that: A. they have longer maturity. B. they differ substantially in default risk. C. they are not taxed. D. they have coupons that are frequently reset. E. All of these describe differences.

  An investment opportunity-similar risk investment

You expect to receive $3,000 in 3 years (i.e., end of year 3). Then you plan to invest it earning 5% per year. SHOW ALL WORK using TVM buttons on the TI BAII Plus Calculator. What will you have at the end of year 8? You are presented with an investme..

  Considering the purchase of new machine

Montilus Products Inc. is considering the purchase of a new machine, which will reduce manufacturing costs by $15,000 annually. Montilus will use the MACRS accelerated method to depreciate the machine (5-year MACRS class life), and it expects to sell..

  What are possible solutions to these harms

What if anything should be done about discrimination in private businesses? As far as serving people? And employing people? What are possible solutions to these harms?

  Expanding rapidly and currently needs to retain all

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $1.50 coming 3 years from toda..

  Number of shares offered

The Elkmont Corporation needs to raise $52.4 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $40 per share and the company’s under..

  Dominant factor affecting medical care delivery and finance

The dominant factor affecting medical care delivery and finance in the 1980s was, The dominant factor affecting medical care delivery and finance in the 1960s was

  Who is a growth investor

The Allure of Growth: Small Cap and Growth Investing Who is a growth investor and passive growth Investing

  Herbal product-cross-exchange rate implicit in forward rates

Shrewsbury Herbal Products, located in central England close to the Welsh border, is an old-line producer of herbal teas, seasoning, and medicines. The banker offers to set up a forward hedge for selling the euro receivable for pound sterling based o..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd