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
A Golden Retriever at 12 years old
Turn on water
The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago
Freedom House is a nonprofit institution that uses several different factors to rank countries based
Use the same paper towels to turn off the faucet.