Which of the following are characteristics of a perpetuity?
A. A perpetuity continues for a fixed time period.
B. In a perpetuity, returns—in the form of a series of identical cash flows—are earned.
C. The present value of a perpetuity is calculated by dividing the amount of the payment by the investor’s opportunity interest rate.
D. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.
