Quiz Ch 05 – T/F Time Impact on Declining Present Values
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Present values decrease with an increase in the time to the cash flows.
True or false: Present values decrease with an increase in the time to the cash flows.
True or false: One dollar tomorrow holds a higher value than one dollar today.
True or false: “Constant dollars” pertains to uniform loan amortization payments.
True or false: A mortgage loan is an instance of an amortizing loan, where a portion of each monthly payment covers interest, and the rest diminishes the loan balance.
True or false: When calculating present value, we utilize an interest rate, referred to as “r,” as the discount rate to discount the future value.
How do you refer to an interest rate that has been annualized using compound interest?
What does the term “compound interest” encompass?
How much will the investment be worth at retirement if you proceed with scenario 1?
Your numbers will vary.
Compute the implied return on a common stock issue given a dividend, the issue price of each share, and an annual dividend growth rate.
Your numbers will vary.
How many years do you have to wait from today?
Your numbers will vary.