Which of the Following Is True About Perpetuities

question 5

Multiple Choice

Which of the following is true about perpetuities?

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

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Definitions:

Jurisdictional Strike

A strike action initiated by workers to contest the assignment of work tasks based on the boundaries of union agreements or trades.

Recognition Strike

A labor action taken by workers to gain acknowledgment from their employer regarding the legitimacy of their union or bargaining unit.

Economic Strike

A work stoppage conducted by employees to demand higher wages, better benefits, or improved working conditions, as opposed to strikes over rights or legal issues.

Sympathy Strike

A work stoppage by one union in support of a strike initiated by another union, typically to support the striking union's goals.