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A share pays a fixed dividend forever. Because that perpetuity never ends, you cannot compute its:

ADividend rate
BFuture value
CPresent value
DPayment size
Answer & Solution
Correct answer: B. Future value
1. A future value needs a fixed end point to compound towards. 2. A perpetuity has no end point at all. 3. So its future value cannot be determined, though its present value can. _Source: OpenStax Principles of Finance 2e, Chapter 8, Time Value of Money II._
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