In Order to Calculate the Present Value of the Sum

question 6

Multiple Choice

In order to calculate the present value of the sum of future payments due from a bond,we use the interest rate to ________ those future payments.

• A)adjust
• B)correct
• C)discount
• D)inflate
• E)maximize

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Comparative Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at two different points in time to analyze financial health and trends.

Net Income

The company's final financial gain once every expense, tax, and cost is subtracted from the gross income.

Operating Activities

Financial transactions and events related to the core business operations of a company.