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 27 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

amandalm

  • Member
  • Posts: 306
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

projections of future oil production projections of future oil production
Rates of Car Injuries and Fatalities by Age Rates of Car Injuries and Fatalities by Age
Spirituality increases with age, but there are different patterns for the two genders. Both genders ... Spirituality increases with age, but there are different patterns for the two genders. Both genders ...
Change in air temperature at various air flow rates for a 7 pass operation Change in air temperature at various air flow rates for a 7 pass operation
The Mantoux tuberculin skin test. Positive reaction. The Mantoux tuberculin skin test. Positive reaction.
A latex agglutination test for rheumatoid factor. A positive control at 1. A negative control at 2. ... A latex agglutination test for rheumatoid factor. A positive control at 1. A negative control at 2. ...
Video: Introduction to Macular Degeneration

For a complete list of videos, visit our video library