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1. 2. 3. 4. To adjust for a down payment in loan so that the loan amount reflects only what is borrowed, we need to:
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To adjust for a down payment in loan so that the loan amount reflects only what is borrowed, we need to: Select one: O a. a. reduce the present value of the loan by the amount of the down payment Ob increase the present value of the loan by the amount of the down payment . add the amount of the down payment at the end of the loan payment period Od minus the amount of the down payment at the end of the loan payment period To value an investment, we can use the following: Select one: O a. Present value (PV) or future value (FV) O b. Present value (PV) only Oc Future value (FV) only O d. Neither present Value (PV) nor future value (FV) If the required rate of return increases, all else being equal, the Price-to-Earning (P/E) ratio will: Select one: O a. decrease O b. increase Os not change Od grow at the required rate of return To adjust for a balloon payment in loan so that it is reflected in the loan payment plan, we need to: Select one: O a. add the amount of the balloon payment as the future value at the end of the payment plan O b. include nothing at the end of the payment plan Oc reduce the present value of the loan by the amount of the balloon payment Od increase the present value of the loan by the amount of the balloon paymentStep by Step Solution
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