1 answer

If we assume that a company will be in business forever and that it continues to...

Question:

if we assume that a company will be in business forever and that it continues to pay dividends during its existence, then we
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. True False

Answers

False.

It will be a perpetuity dividend stream.

A company will be in business forever, then the dividends received from it will be a perpetual stream.

Annuity stream is one in which cash flows will be for limited period of time.

.

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