The future value of a current investment earning a positive rate of return is always greater than the present value of the investment

Indicate whether this statement is true or false.


Answer: TRUE

Business

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The balance of the $0.50 par value Common Stock account for Murdock Company was $60,000 before its recent 3-for-1 stock split. The market price of the stock was $30 per share before the stock split. What occurred as a result of the stock split?

a. The balance in the Retained Earnings account decreased. b. The balance in the Common Stock account declined to $20,000. c. The market price of the stock was not affected. d. The market price of the stock dropped to approximately $10 per share.

Business

A(n) _______ is a promise that depends on the occurrence of a specified condition in order for the promise to be binding

A) cancellation provision. B) preexisting legal obligation. C) conditional promise. D) good-faith adjustment.

Business

Below is information related to two companies: Company 1Company 2Return on assets 8.2%  6.3%Debt to equity 67.2%  53.4%Based on the ratios above, what is generally true about these two companies?

A. Company 1 has lower profitability and lower risk. B. Company 1 has higher profitability and lower risk. C. Company 1 has lower profitability and higher risk. D. Company 1 has higher profitability and higher risk.

Business

In order to attain the specially favored status of being a holder in due course, the holder need not give value for the paper

Indicate whether the statement is true or false

Business