Which Term Applies to a Set of Cash Flows That

question 90

Multiple Choice

Which term applies to a set of cash flows that are finite in number and increase in amount at a steady rate?

• A)Perpetuity
• B)Growing annuity
• C)Growing perpetuity
• D)Annuity
• E)Lump sum payment

---

Definitions:

Stock Price

The current price at which shares of a particular company can be bought or sold on a stock exchange.

Dividend Yield

A financial metric indicating the annual dividend payment of a company as a proportion of its stock price.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, typically used as a measure of risk.

Time to Maturity

The remaining time until a financial instrument, like a bond, reaches its repayment date.