If we assume that a company will be in business forever and that it pays dividends, then we have an annuity dividend stream.

Name: If we assume that a company will be in business forever and that it pays dividends, then we have an annuity dividend stream.
Brand: Quizplus
Rating: 4.7 (31 reviews)

Question

Quizplus · Accepted Answer

An annuity dividend stream implies a fixed number of payments, whereas a company in business forever paying dividends would create a perpetuity, not an annuity.

If We Assume That a Company Will Be in Business