This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If interest rates are positive, then discounting increases the future value of an investment while ... (Read 29 times)

Charlie

  • Hero Member
  • *****
  • Posts: 640
on: Jul 10, 2018
If interest rates are positive, then discounting increases the future value of an investment while compounding reduces the present value of an investment.
 
  Indicate whether the statement is true or false.

Question 2

In valuation of common stock, the price/earnings multiple approach is considered superior to the use of book or liquidation values since it considers expected earnings.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nyrave

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: Discounting DECREASES the PRESENT value of an investment while compounding INCREASES the FUTURE value of an investment.

Answer to Question 2

TRUE


Charlie

  • Member
  • Posts: 640
Reply 2 on: Jul 10, 2018
Excellent

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

The FDA recognizes 118 routes of administration.

Gram positive S. pyogenes bacteria in chains. Gram positive S. pyogenes bacteria in chains.
Cancer Survival Rates According to Psychological Response to Diagnosis Cancer Survival Rates According to Psychological Response to Diagnosis
Flow data for a healthy donor (top panel) and a HIV positive patient. CD3 is a T-cell marker, CD4 is ... Flow data for a healthy donor (top panel) and a HIV positive patient. CD3 is a T-cell marker, CD4 is ...
Protein topology and folding rates Protein topology and folding rates
Growing Interest in Sugar-Free Foods and Beverages Growing Interest in Sugar-Free Foods and Beverages
Directions and Rates of Plate Motions Directions and Rates of Plate Motions
Video: Transmission Across a Synapse

For a complete list of videos, visit our video library