Which of the following are characteristics of a perpetuity? Check all that apply. A perpetuity continues for a fixed time period. In a perpetuity, returns-in the form of a series of identical cash flows-are earned. The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

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Business

Denisse Mcdowell

19 October, 13:10

Which of the following are characteristics of a perpetuity? Check all that apply. A perpetuity continues for a fixed time period. In a perpetuity, returns-in the form of a series of identical cash flows-are earned. The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

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Ezra Mcdowell · Answer 1

Answer: In a perpetuity, returns-in the form of a series of identical cash flows-are earned. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

Explanation:

A perpetuity is referred to as or known as an annuity that tends to have no end or stream of the cash payments which also continues forever. There only exist few actual perpetuities in raelity. Preferred stock and real estate are the prime example among few kinds of investments that tends to affect results of perpetuity, and thus the prices can be further established using process and techniques for evaluating perpetuity.