William Buys 20 Shares of Zync Corporation at $18

question 19

Multiple Choice

William buys 20 shares of Zync Corporation at $18.5 per share. Zync pays dividend at the end of each year on the basis of profits made during the year. In its 25 years history, Zync has paid dividends every year without fail. The initial investment by William and the receipt of dividend at the end of every year is referred to as _____ and _____ respectively.

• A) uneven cash flows; annuity due
• B) uneven cash flows; ordinary annuity
• C) lump-sum payment; annuity due
• D) lump-sum payment; uneven cash flows
• E) lump-sum payment; ordinary annuity

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Definitions:

Stromatolites

Layered sedimentary formations created by the growth of microorganisms, representing some of the oldest evidence of life on Earth.

Oxygen-rich Atmosphere

An atmospheric condition where there is a high concentration of oxygen, significant for sustaining aerobic life forms.

Great Dying

An event at the end of the Permian period, about 252 million years ago, where there was a massive extinction of species.

Meteorite Impact

The collision of a meteorite with the Earth, creating craters and sometimes affecting climate and biological evolution.