The present value of a future sum decreases as either the discount rate or the number of periods per year increases,

other things held constant.

True

False

Question $3(5$ points$)$

Other things held constant, which of the following actions would increase the amount of cash on a company's balance

sheet?

The company gives customers more time to pay their bills.

The company repurchases common stock.

The company pays a dividend.

The company issues new common stock.

The company purchases a new piece of equipment.