If We Assume That a Company Will Be in Business

question 2

True/False

If we assume that a company will be in business forever and that it continues to pay dividends during its existence,then we have an annuity dividend stream.

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Definitions:

First-Price

Refers to an auction format in which the highest bid wins, and the winner pays the amount they bid.

Bid-Rigging

A form of fraud in which a commercial contract is promised to one party even though for the sake of appearance several other parties also present a bid.

First-Price Auctions

An auction format in which the highest bidder wins and pays the amount of their bid.

Highest Bid

The largest amount of money offered in a competitive process, such as an auction, for the purchase of goods or services.