Given a Discount Rate of 10 Percent, the Present Value

question 92

Multiple Choice

Given a discount rate of 10 percent, the present value of receiving $10,000 two years in the future is

• A) $12,000.
• B) $8,000.
• C) $8,264.46.
• D) $12,100.

---

Definitions:

Shareholder's Loan

A loan given to a company by one of its shareholders, typically used for startup or growth financing.

Tort Of Assault

A civil wrong where one person intentionally puts another in fear of imminent harmful or offensive contact.

Relief-From-Oppression Provisions

Legal measures available to protect minority shareholders in a company from unfair treatment or oppressive actions by majority shareholders.

Pre-Emptive Right

The right of a shareholder to buy new shares in the same proportion as her current ownership of shares.