William Buys 20 Shares of Zync Corporation at $18

Multiple Choice

William buys 20 shares of Zync Corporation at $18.5 per share. Zync pays dividend at the end of each year on the basis of profits made during the year. In its 25 years history, Zync has paid dividends every year without fail. The initial investment by William and the receipt of dividend at the end of every year is referred to as _____ and _____ respectively.

A) uneven cash flows; annuity due
B) uneven cash flows; ordinary annuity
C) lump-sum payment; annuity due
D) lump-sum payment; uneven cash flows
E) lump-sum payment; ordinary annuity