In a loan repayment schedule, the term amortized refers to
A) the method by which interest is calculated.
B) the repayment of the principal and interest through a series of equal payments.
C) the life of the loan.
D) assets used to back the loan.
Answer: B
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Emphasizing the negative consequences that may occur unless a consumer changes behavior is called ________
A) a fear appeal B) a rational appeal C) social marketing D) comparative marketing
Multilateral bargaining occurs when:
A. Parties must negotiate with members of their own constituency B. One union and one employer negotiate together C. Negotiations occur between multiple parties such as union, management, government officials, and workers D. Bargaining occurs at different stages of the negotiation process
Gekko Properties is considering purchasing Teldar Properties. Gekko's analysts project that the merger will result in incremental after-tax cash flows of $2 million, $4 million, $5 million, and $10 million over the next four years. The horizon value of the firm's operations, as of Year 4, is expected to be $108 million. Assume all cash flows occur at the end of the year. The acquisition would be made immediately, if it is undertaken. Teldar's post-merger beta is estimated to be 2.0, and its post-merger tax rate would be 35.00%. The risk-free rate is 6.00%, and the market risk premium is 5.70%. What is the value of Teldar to Gekko Properties? Do not round intermediate calculations.
A. $78,888,332 B. $69,812,683 C. $76,793,952 D. $82,378,966 E. $56,548,273
Which of the following statements regarding annuities is FALSE?
A) PV of an annuity = C × ImageImage B) The difference between an annuity and a perpetuity is that a perpetuity ends after some fixed number of payments. C) An annuity is a stream of N equal cash flows paid at regular intervals. D) Most car loans, mortgages, and some bonds are annuities.