1. An asset characterized by cash flows that increase at a constant rate forever is called
a: growing annuity.
b: perpetuity due.
c: growing perpetuity.
d: preferred stock.
e: common annuity.
2. Which of the following statements about pricing is true?
a. It cannot determine the long-term viability of an enterprise.
b. It should be determined in isolation from the other marketing mix elements.
c. It is a major competitive tool in meeting and beating close rivals and substitutes.
d. It is the only element in the marketing mix that produces fixed costs.