If the Interest Rate Is 5 Percent,what Is the Present

question 81

Multiple Choice

If the interest rate is 5 percent,what is the present value of a payment of $500 to be made one year from today?

• A)$457.14
• B)$475.00
• C)$480.77
• D)None of the above are correct to the nearest penny.

Understand the distinction between different sources of power in organizations.

Recognize how leaders can effectively use power and influence tactics to achieve organizational goals.

Identify the outcomes of various influence tactics and power sources.

Analyze the role of personal and position power in leadership effectiveness.

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Definitions:

Systematic Risk

The inherent risk associated with the entire market or market segment, which cannot be eliminated by diversification.

SML Approach

The SML (Security Market Line) Approach is a relationship depicted in a graph that shows the expected return of a security against its risk, represented by beta.

Coupon Rate

The annual interest rate paid by a bond relative to its face or par value, which the bondholder receives.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.