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

Author Question: Your trust fund will pay you 100,000 in six years when you turn 25. A shady financial institution ... (Read 108 times)

silviawilliams41

  • Hero Member
  • *****
  • Posts: 560
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

xthemafja

  • Sr. Member
  • ****
  • Posts: 348
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.
Answer Preview
Only 55% of students answer this correctly


silviawilliams41

  • Member
  • Posts: 560
Reply 2 on: Jul 10, 2018
Gracias!

Viet Thy

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

“Career choice” for many women means leaving their paid jobs for a number of years when they ... “Career choice” for many women means leaving their paid jobs for a number of years when they ...
Adults in the middle-aged group (37–42 years) score higher on measures of generativity than either ... Adults in the middle-aged group (37–42 years) score higher on measures of generativity than either ...
Ford uses an inertia switch to turn off the electric fuel pump in case of an accident. Ford uses an inertia switch to turn off the electric fuel pump in case of an accident.
Effleurage with loose fist to left side of neck. Turn the head slightly to the right side, exposing ... Effleurage with loose fist to left side of neck. Turn the head slightly to the right side, exposing ...
In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents
Development of the Dungeness crab (Cancer magister). The crabs live for 8 to 10 years. Development of the Dungeness crab (Cancer magister). The crabs live for 8 to 10 years.
Video: Wound Repair Animation

For a complete list of videos, visit our video library