Match Each of the Definitions That Follow with the Appropriate

question 39

Multiple Choice

Match each of the definitions that follow with the appropriate investment term (a-j) .
-When using this, dividends are treated as a reduction of the investment

• A)Debt securities
• B)Equity securities
• C)Investor
• D)Investee
• E)Cost method
• F)Trading securities
• G)Available-for-sale securities
• H)Held-to-maturity securities
• I)Equity method
• J)Business combination

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Definitions:

Present Discounted Value

The present worth of a future amount of money or sequence of cash flows, calculated using a given interest rate.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, charged by lenders to borrowers.

Expected Profits

The forecasted profit a business anticipates earning over a certain period, based on estimates of future revenues and costs.

Market Value

The amount of money a willing buyer would pay a willing seller for a good, service, or asset in the open market.