The Present Value of a Future Sum Decreases as Either

question 82

True/False

The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant.

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Definitions:

Appraisal Rights

Legal rights that allow shareholders to demand an independent evaluation of a company's shares during certain transactions.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Foreign Corporations

Businesses that are incorporated in one country but are registered to do business in other countries outside of their home jurisdiction.

Merger

A combination of two or more corporations in which only one of the corporations continues to exist.