Which one of the following statements is correct, all else held constant? A. The future value...

Which one of the following statements is correct, all else held constant?

A. The future value will decrease if the interest rate is increased.

B. An increase in the interest rate will increase the time period.

C. The present value is directly related to the interest rate.

D. The future value and the present value are directly related.

Expert Solution

jeff jeffy answered 2 years ago

Which one of the following will increase shareholders' equity, all else held constant? Multiple Choice A...

Which one of the following will increase shareholders' equity, all else held constant? Multiple Choice A purchase of equipment on account. The collection of an account s receivable. A sale of inventory at a profit. A payment on a loan. The declaration of a stock dividend.

Question 1) All else held constant, which of the following actions would increase the amount of...

Question 1) All else held constant, which of the following actions would increase the amount of cash on a company’s balance sheet? a) The company buys new equipment on credit terms. b) The company gives customers less time to pay their bills. c) The company repurchases common stock. d) The company pays a dividend. e) None of the above. Question 2) Which of the following items is not normally considered to be a current asset or current liability? a) Accounts...

When the government places a tax on a good and all else is held constant, which...

When the government places a tax on a good and all else is held constant, which of the following would most likely happen? The price the buyer pays for the good decreases, assuming the good does not have a horizontal demand curve. The price and quantity adjust back to the competitive market equilibrium point. The overall consumption of the good decreases, assuming the good does not have a vertical demand curve. The supply curve shifts to...

Which of the following statements is CORRECT? Other things held constant, the less debt a firm...

Which of the following statements is CORRECT? Other things held constant, the less debt a firm uses, the lower its return on total assets will be. The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes. The return on common equity (ROE) is generally regarded as being less significant, from a stockholder's viewpoint, than the return...

1. Which of the following statements is true? Select one: a. holding everything else constant, an...

1. Which of the following statements is true? Select one: a. holding everything else constant, an increase in planned investment spending shifts the AE function downward, leading to a higher level of GDP b. Most recessions start with a decrease in investment spending. c. Economists think that decreases in consumer spending often follow decreases in investment spending. d. Answers (a), (b), and (c) are all true e. Answers (b) and (c) are both true 2. An increase in the market...

Question 3 Suppose there is an increase in expected future income. Everything else held constant, this...

Question 3 Suppose there is an increase in expected future income. Everything else held constant, this will change the ______ and the consumption function will _____. Question 3 options: autonomous consumption component; shift down autonomous consumption component; shift up marginal propensity to consume; shift down marginal propensity to consume; shift up

Which of the following statements is most correct? Select one: a. The constant growth model is...

Which of the following statements is most correct? Select one: a. The constant growth model is often appropriate for companies that never pay dividend. b. The constant growth model can be applied to companies that expect zero dividend growth rate. c. The constant growth model is inappropriate for mature companies with a stable history of growth. d. The constant growth model is often appropriate for companies that the dividend growth rate is larger than its required rate of return on...

1) Which of the following statements is most correct? Select one: a. The constant growth model...

1) Which of the following statements is most correct? Select one: a. The constant growth model is often appropriate for companies that never pay dividend. b. The constant growth model is often appropriate for companies that the dividend growth rate is larger than its required rate of return on stock. c. The constant growth model is inappropriate for mature companies with a stable history of growth. d. Two firms with the same dividend and growth rate should have the same...

Which of the following is true? a. Everything else remaining constant, the present value of a...

Which of the following is true? a. Everything else remaining constant, the present value of a future lump sum payment will increase if the time period declines. b. Everything else equal, you will accrue more interest if you choose to invest using simple interest versus compound interest. c. Everything else held constant, if the number of payments related to an annuity due increase, so will the present value of the annuity. d. All else equal, the future value of an...

Which one of the following statements is correct?

Which one of the following statements is correct? A. Ending Cash Balance on the Cash Budget is an input to the SG&A Budget. B. Ending Cash Balance on the Cash Budget is an input to the Forecasted Income Statement. C. Ending Cash Balance on the Cash Budget is an input to the Sales Budget. D. None of the above statements are correct.

Question