16. The future value of a dollar a. Decreases with compounding b. Decreases with higher interest rates c. Increases with higher interest rates d. Increases with lower interest rates 17. If the dividend of a corporation is $2.65 per share, the constant growth rate of the dividend is 3 percent and the investors required rate of return is 10 percent, what is the intrinsic value of this stock? a. S 38.05 per share b. $37.86 per share c. $41.17 per share d. Cannot be determined 18. A bond is essentially a. the same as common stock b. a debt instrument c. the same as preferred stock d. similar to a mutual fund 19. How would a low rating by Standard & Poor's or Moody's affect a corporate bond issue? a. The bonds will not sell. b. It is forbidden for the bonds to be issued in the United States. c. Interest rates on such bonds must be higher than higher-rated bonds. d. Actually such ratings have no effect on the bonds. 20. Which of the following assets is considered to be completely liquid? a. Accounts Receivable b. Cash c. Prepaid Expenses d. Inventory