In future value or present value problems, unless stated ...

[go.lag]

In future value or present value problems, unless stated otherwise, cash flows are assumed to be:
 
  A) At the end of the time period.
  B) At the beginning of the time period.
  C) In the middle of the time period.
  D) Spread out evenly over a time period.

Question 2

EveningFall, Inc. pays a quarterly dividend of 3.40 per share. Which of the following statements is
  most accurate concerning which shareholders will receive the dividend payment?
 
  A) The shareholders who own the stock the day the dividend is paid will receive the dividend.
  B) The shareholders who are identified as owning the stock on the record date will receive the
  dividend, even if they sell their stock before the dividend checks are mailed.
  C) All shareholders who own the stock on the record date, but sell the stock before the dividend
  checks are mailed, forfeit their right to receive the dividend and the money reverts back to the
  corporation.
  D) The shareholders who own the stock on the date the dividend is declared will receive the
  dividend, even if they sell their stock before the dividend checks are mailed.

[nmyers]

Answer to Question 1

A

Answer to Question 2

B