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    Future and present value of a sum of money

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    These are questions that I cannot seem to find the answer to. Any sort of help would be greatly appreciated!

    ---
    Both the future and present value of a sum of money are based on?
    Interest rate
    Number of time periods
    Both interest rate and number of time periods
    None of the above mentioned
    What is an annuity?
    More than one payment
    A series of unequal but consecutive payments
    A series of equal and consecutive payments
    A series of equal and non-consecutive payments
    If you have $1000 and you plan to save it for 4 years with an interest rate of 10% what is the future value of your savings?
    1464.00
    1000.00
    1331.00
    Cannot be determined
    Why is time value of money an important finance concept?
    It takes risk into account
    It takes time into account
    It takes compound interest into account
    All of the above mentioned
    The present value of a dollar to be received in the future is
    More than a dollar
    Equal to a dollar
    Less than a dollar
    None of the above mentioned
    In valuing a financial asset, you use these variables
    Present value of future cash flows
    Discount rate
    Required rate of return
    All of the above mentioned
    The principal amount of a bond at issue is called
    Par value
    Coupon value
    Present value of an annuity
    Present value of a lump sum
    If a bond's value rises above its par value during its life, interest rates have
    Gone up
    Gone down
    Stayed the same
    There is no correlation with interest rates
    The basic "rent" that you are charged when you borrow money is called
    Inflation premium
    Risk premium
    Real rate of return
    None of the above mentioned
    As time to maturity draws near, a bond's value approaches
    Zero
    Par
    The coupon payment
    None of the above mentioned
    What focuses on long-term decision making regarding the acquisition of projects?
    Working capital management
    Capital budgeting
    Cash budgeting
    None of the above mentioned
    Since capital budgeting uses cash flows instead of accounting flows, the financial manager must add back what to the analysis?
    The cost of fixed assets
    The cost of accounts payable
    Investments
    Depreciation
    Which capital budgeting method focuses on firm liquidity?
    Payback method
    Net present value
    Internal rate of return
    None of the above mentioned
    Which of the following capital budgeting methods states the return of a project as a percentage?
    Payback period
    Net present value
    Internal rate of return
    None of the above mentioned
    Which of the following capital budgeting methods is the least theoretically correct?
    Payback method
    Net present value
    Internal rate of return
    None of the above mentioned
    Who has a claim to the residual income of the firm?
    Bondholders
    Preferred stockholders
    Common stockholders
    None of the above mentioned
    What voting elects a member of the board of directors of a firm with a 51% vote?
    Cumulative
    Preferred
    Majority
    None of the above mentioned
    Which of the following types of voting includes minority shareholders?
    Cumulative
    Preferred
    Majority
    None of the above mentioned
    If a corporate charter says that current stockholders must be give the first option to purchase new stock, what kind of rights offering is that?
    Pre-emptive
    Rights-on
    Ex-rights
    None of the above mentioned
    When a rights offering is announced, the stock initially trades
    Ex-rights
    Rights-on
    No-rights
    Pre-emptive right
    The Board of Directors may do which of the following with net income
    Put it in the cash account
    Retain it
    Pay it out as dividends
    Retain it and pay it out as dividends
    One desire of stockholders regarding dividend policy is
    Stable dividends
    Frequent dividends
    Low dividends
    High Dividends
    A stock dividend
    Increases the value of stockholder's equity
    Decreases the value of stockholder's equity
    Does not change the value of stockholder's equity
    None of the above mentioned
    The purpose of a stock spilt is usually to
    Increase the investor's wealth
    Bring down the stock price into a lower trading range
    Reduce the threat of takeover
    Decrease the number of shares outstanding
    As a result of the Jobs and Growth Tax Relief Act of 2003, dividends and capital gains are taxed at a maximum rate of
    38.6%
    20%
    15%
    None of the above rates
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    https://brainmass.com/business/capital-budgeting/future-and-present-value-of-a-sum-of-money-62877

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    These are questions that I cannot seem to find the answer to. Any sort of help would be greatly appreciated!

    ---
    Both the future and present value of a sum of money are based on?
    Interest rate
    Number of time periods
    Both interest rate and number of time periods
    None of the above mentioned
    What is an annuity?
    More than one payment
    A series of unequal but consecutive payments
    A series of equal and consecutive payments
    A series of equal and non-consecutive payments
    If you have $1000 and you plan to save it for 4 years with an interest rate of 10% what is the future value of your savings?
    1464.00
    1000.00
    1331.00
    Cannot be determined
    Why is time value of money an important finance concept?
    It takes risk into account
    It takes time into account
    It takes compound interest into account
    All of the above mentioned
    The present value of a dollar to be received in the future is
    More than a dollar
    Equal to a dollar
    Less than a dollar
    None of the above mentioned
    In valuing a financial asset, you use these variables
    Present value of ...

    Solution Summary

    This discusses the future and present value of a sum of money

    $2.19

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