A Perpetuity Differs from an Annuity Because

question 9

Multiple Choice

A perpetuity differs from an annuity because:

• A)perpetuity cash flows vary with the rate of inflation.
• B)perpetuity cash flows vary with the market rate of interest.
• C)perpetuity cash flows are variable while annuity payments are constant.
• D)perpetuity cash flows never cease.
• E)annuity cash flows occur at irregular intervals of time.

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Definitions:

Personal Contacts

Individuals one knows personally and can communicate with, often used for networking or personal assistance.

Private Placements

Direct sale of securities to a limited number of sophisticated investors, bypassing the public offering process.

Debt SEOs

Debt SEOs, or Seasoned Equity Offerings, refer to the issuance of new shares by a company that has previously gone public, which is incorrect as this term combines concepts improperly. SEOs are equity based and do not pertain directly to debt. NO.

Notes Payable

Written promises to pay a specific sum of money on a certain date, usually including interest.