1. A preferred stock would be an ideal example of:
a. a perpetuity.
b. an ordinary annuity.
c. an annuity due.
d. a growing annuity.
2. Cash flows associated with annuities are considered to be:
A. a constant cash flow stream.
B. an uneven cash flow stream.
C. a mix of constant and uneven cash flow streams.
d. a cash flow stream with decreasing trend.