Match the Terms to the Definitions by Selecting the Letter

question 1

Multiple Choice

Match the terms to the definitions by selecting the letter of the term.Each term may be used more than once or not at all.
-Allows preferred stock to be returned to the corporation in exchange for common stock.

• A)cumulative feature
• B)stock dividend
• C)retired stock
• D)retained earnings
• E)callable feature
• F)convertible feature
• G)outstanding shares
• H)treasury stock
• I)participating feature
• J)additional paid-in capital

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Definitions:

Future Value

The future value of an asset or cash that, on a specific future date, is equal in worth to a given amount today.

Cash Flow

The total financial movement entering and exiting a business, substantially affecting its operational liquidity.

Present Value

The current value of a future amount of money or a series of future payments, discounted at a specific rate.

Future Value

The value of an asset or cash at a specific date in the future that is equivalent in value to a specified sum today.