Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements does/do not state a relationship correctly? I. Time and present value are positely related, all else held constant. II. Time

Which of the following statements does/do not state a relationship correctly?

I. Time and present value are positely related, all else held constant.

II. Time and present values are negative related, all else held constant.

III. Future value and present value are positively related, all else held constant.

IV. An increase in the discount rate decreases the present value, given positive rates.

V. Time does not have an effect on the future value no matter what the interest rate is.

III and IV only

IV and V only

II and IV only

I and V only

I, III and V only

Which of the accounts listed below is/are associated with working capital management?

I. fixed assets II. common stock III. long-term debt IV. accounts payable

Depreciation:

I. is a non-cash expense. II. increases the costs of a firm. III. decreases net operating cash flow. IV. increase the net fixed assets as shown on the balance sheet.

For a par bond, you will find its

I. market price = call price

II. market price < face value

III. coupon rate = yield-to-maturity

IV. current yield = yield-to-maturity

A/An ______________ will result in a decrease in the price sensitivity of a bond to changes in interest rates.

I. increase in coupon rate

II. decrease in coupon rate

III. increase in time to maturity

IV. decrease in time to maturity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Your Business Secure Funding To Start Run And Grow Your Business

Authors: The Staff Of Entrepreneur Media

1st Edition

1599185970, 978-1599185972

More Books

Students also viewed these Finance questions