Which of the Following Is TRUE About Perpetuities

question 5

Multiple Choice

Which of the following is TRUE about perpetuities?

• A)All else equal,the value of a perpetuity is higher when the periodic cash flow is lower.
• B)All else equal,the value of a perpetuity is higher when the interest rate is higher.
• C)If two perpetuities have the same present value and the same interest rate,they must have the same cash flows.
• D)All else equal,the value of a perpetuity is lower when the interest rate is lower.
• E)If two perpetuities have the same cash flows,they must have the same present value.

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Definitions:

Allopatric Speciation

Speciation pattern in which a physical barrier arises and separates populations, ending gene flow between them.

Geographic Isolation

A form of reproductive isolation in which two populations are separated by physical barriers, leading to the development of distinct species.

Rapid Evolutionary Change

A process where species undergo significant alterations in their genetic makeup over relatively short geological periods, often in response to dramatic environmental shifts.

Midrange Forms

Species or variations within species that exhibit characteristics or traits intermediate between two distinct groups, reflecting evolutionary or genetic transitions.