Which of the Following Statements Regarding Perpetuities Is FALSE

question 62

Multiple Choice

Which of the following statements regarding perpetuities is FALSE?

• A) To find the value of a perpetuity by discounting one cash flow at a time would take forever.
• B) A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever.
• C) PV of a perpetuity =
• D) One example of a perpetuity is the British government bond called a consol.

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Definitions:

Impression Management

The process by which individuals attempt to control the perceptions others have of them.

Fundamental Attribution Error

The tendency to underestimate the influence of external factors and overestimate the impact of internal factors when making judgments about the behavior of others.

Self-Serving Bias

The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors.

Fundamental Attribution Error

The tendency to overestimate the influence of personal characteristics and underestimate the role of situational factors in explaining others' behavior.