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Which Is the Best Definition of a Growing Perpetuity

Question 306

Multiple Choice

Which is the best definition of a growing perpetuity?


A) The interest rate charged per period multiplied by the number of periods per year.
B) An annuity for which the cash flows occur at the beginning of the period.
C) A constant stream of cash flows without end that is expected to rise indefinitely.
D) An annuity in which the cash flows continue forever.
E) A level stream of cash flows for a fixed period of time.

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