Which of the following is false?
a. The future value of a deferred annuity is the same as the future value of an annuity not deferred.
b. A deferred annuity is an annuity in which the rents begin after a specified number of periods.
c. To compute the present value of a deferred annuity, we compute the present value of an ordinary annuity of 1 for the entire period and subtract the present value of the rents which were not received during the deferral period.
d. If the first rent is received at the end of the sixth period, it means the ordinary annuity is deferred for six periods.
Answer: d. If the first rent is received at the end of the sixth period, it means the ordinary annuity is deferred for six periods.
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TMS just paid an annual dividend of $2.84 per share on its stock. The dividends are expected to grow at a constant rate of 1.85 percent per year. If investors require a rate of return of 10.4 percent, what will be the stock price be in Year 11?
A. $41.71 B. $40.64 C. $35.75 D. $41.39 E. $42.57
Compare and contrast the terms creative strategy and creative execution
What will be an ideal response?