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Author Question: Your trust fund will pay you 100,000 in six years when you turn 25. A shady financial institution ... (Read 110 times)

silviawilliams41

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on: Jul 10, 2018
Your trust fund will pay you 100,000 in six years when you turn 25. A shady financial institution has encouraged you to sign away the rights to your trust fund in exchange for cash today.
 
  Would you prefer that the financial institution use a discount rate of 8 or 10 to determine the value of your lump sum payment? Why?
  A) Use 8 because the lump sum payment of 62,741 is greater than the 10 discounted value of 55,839.
  B) Use 10 because the lump sum payment of 62,741 is greater than the 10 discounted value of 55,839.
  C) Use 8 because the lump sum payment of 63,017 is greater than the 10 discounted value of 56,447.
  D) Use 10 because the lump sum payment of 63,017 is greater than the 10 discounted value of 56,447.

Question 2

Preferred stock is riskier than long-term debt because its claim on assets and income come after
  those of bonds.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


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xthemafja

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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silviawilliams41

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

Kedrick2014

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Reply 3 on: Yesterday
Excellent

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