If a Security Pays $55 in One Year and $133

question 78

Multiple Choice

If a security pays $55 in one year and $133 in three years,its present value is $150 if the interest rate is

• A)5 percent.
• B)10 percent.
• C)12.5 percent.
• D)15 percent.

Apply fair value adjustments in the context of business combinations.

Understand the mechanics of the Equity Method for accounting for investments.

Understand and apply the Fair Value Enterprise (FVE) Method for valuing non-controlling interests.

Understand adjustments necessary for inventory valuation differences at acquisition.

---

Definitions:

Margin of error

The amount of error that can be tolerated in survey or poll results, often used in describing the accuracy of a confidence interval.

Electric usage

The amount of electrical energy consumed by a device, household, or establishment over a given time period.

Edmund Charles Genet

Edmund Charles Genet was a French envoy to the United States in the 1790s, whose actions, including the unauthorized recruitment of American mercenaries to attack British ships, led to the Genet Affair, testing U.S. neutrality.

French Revolution

was a period of radical social and political upheaval in France from 1789 to 1799 that significantly influenced the decline of monarchies and churches in Europe.