The rate used to adjust future cash flows to determine their value in present period terms is the
a. current interest rate.
b. cost of capital.
c. rate determined by the ratio of assets to liabilities.
d. present value.
ANSWER: b
You might also like to view...
eBay’s transformation of e-commerce and online auctions and Amazon enabling the purchase of books online are examples of ______.
A. product innovation B. process innovation C. innovation in materials D. innovation in equipment manufacture
Cross-border flows of corporate investments such as purchasing or establishing foreign subsidiaries and joint ventures is called:
A. International trade B. Foreign direct investment C. International investment D. Indirect foreign investment
Jesse purchases 50 shares of Mountain Ridge Corporation stock. Explain what, if any, liability Jesse has to the corporation or its creditors with respect to the shares
A ________ is a type of loan that has the same cash flow payment every year throughout the life of the loan
A) discount loan B) simple loan C) fixed-payment loan D) interest-free loan