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- Introduction to Financial ManagementReviewing Financial StatementsAnalyzing Financial StatementsTime Value of Money 1: Analyzing Single Cash FlowsTime Value of Money 2: Analyzing Annuity Cash FlowsUnderstanding Financial Markets and InstitutionsValuing BondsValuing StocksCharacterizing Risk and ReturnEstimating Risk and ReturnCalculating the Cost of CapitalEstimating Cash Flows on Capital Budgeting ProjectsWeighing Net Present Value and Other Capital Budgeting CriteriaWorking Capital Management and PoliciesFinancial Planning and ForecastingAssessing Long-Term Debt, Equity, and Capital StructureSharing Firm Wealth: Dividends, Share Repurchases, and Other PayoutsIssuing Capital and the Investment Banking ProcessInternational Corporate FinanceMergers and Acquisitions and Financial Distress

Question 1

Free

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present value

future value

time value to money

payment

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Question 2

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loans.

budgets.

annuities.

bills.

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Question 3

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the time line

interest rate for compounding

the present value

the future value

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Question 4

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the appropriate compound rate.

the appropriate discount rate.

the appropriate simple rate.

the appropriate tax rate.

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Question 5

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whether you get simple or compound interest.

how long compounding will affect you.

how long discounting will affect you.

the interest rate that a lender will offer.

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Question 6

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get loans more easily.

cannot get loans as easily.

borrow more money.

afford higher payments.

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Question 7

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worth very little today.

worth much more today.

valued as having no time value of money.

valued as worthless as their value is not determinable.

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Question 8

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and is not effected by interest rate changes.

that do not have time value of money implications.

continuously for one year.

periodically forever.

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Question 9

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ordinary annuities.

annuities due.

perpetuities.

present values.

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Question 10

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multiplies it by (1 + i).

divides it by (1 + i).

multiplies it by (1 − i).

divides it by (1 −i).

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Question 11

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the lower the future value will be.

the higher the future value will be.

the less likely the future value can be calculated.

the more likely the future value can be calculated.

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Question 12

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grows.

decreases.

is independent of the monthly compounding.

is affected only if the calculation involves an annuity due.

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Question 13

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less accurate measure of the interest rate paid for monthly compounding.

more accurate measure of the interest rate paid for monthly compounding.

concept that is only used because the law requires it, and is of no use to a borrower.

measure that only applies to mortgages.

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Question 14

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when rates fall.

when rates rise.

when rates fall and rise.

whenever they need to, independent of rates.

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Question 15

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the principal balance paid per period only.

the interest paid per period only.

both the principal balance and interest paid per period.

the present value of the payments due.

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Question 16

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usually only pays the accrued interest and a small amount of principal.

usually only pays the principal and a small amount of accrued interest.

usually only pays the principal and no accrued interest.

usually only pays the accrued interest and no principal.

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Question 17

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you are wasting your current consumption and making TVM not work for you.

you will reduce the payoff time.

you will increase the payoff time.

you will not affect the payoff time.

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Question 18

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$1,917.25

$7,002.99

$12,720.00

$18,620.78

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Question 19

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$3,312.10

$4,320.00

$4,506.11

$9,214.20

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Question 20

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$480.00

$493.62

$558.46

$582.27

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