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April 27, 2015

Homework Help: Finance

Posted by Neisha on Sunday, July 7, 2013 at 5:49pm.

Common stock that pays cash dividends can be viewed as:
an annuity‚€”regularly spaced payments of the same dollar amount for a fixed number of periods.
a perpetuity‚€”regularly spaced payments of the same dollar amount that continue indefinitely.
similar to a perpetuity but with irregular spacing of the dividends.
similar to a perpetuity but with dividends that change amount.

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