1)perpetuity ?

a. an investment that assumes that the investment has a return greater than the intrinsic rate of return

b. an investment that assumes a return that is greater than the growth rate, that is, r>g

c. an investment that pays a cash flow for an extended period of time

d. an investment products that assumes "the going concern principle

2)An investment most usually have two sets of reward to the given investor. These are

a. net income and capital appreciation or depreciation

b. income and free cash flow

c. dividends and book value for the equity investing

d. free cash flow and interest payments

3) According to class discussion economic rents are rates of return that

a. equal the opportunity cost of the capital.

b. are less than the opportunity cost of capital.

c. exceed the opportunity cost of capital.

d. are not related to the opportunity cost of capital.

4) A asset is worth more to others than it is to you, you should generally attempt to

a. sell the asset assuming you own it

b. buy the asset

c. all of he above are correct

d. the required rate of return is less than the growth rate of the given business