An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an -Select-(finite/ infinite series).

A -Select-(preferred/common) stock with no maturity is an example of a perpetuity.

Quantitative Problem: You own a security that provides an annual dividend of $145 forever. The securitys annual return is 5%. What is the present value of this security? Round your answer to the nearest cent.

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