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When Firms Retain Cash,they Are Generating Funds Internally Thereby Decreasing

question 66

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When firms retain cash,they are generating funds internally thereby decreasing the amount of external funds needed.


Definitions:

Future Value

The value of an investment at a specified date in the future that is equivalent in value to a specified sum today after being compounded over time.

Interest Rate

The portion of a total amount of money levied for borrowing it, usually represented as a yearly rate.

Amount

The total sum or quantity of something.

Annuity Payment

Regular periodic payments made to an annuitant or beneficiary, often fixed sums received from a retirement account or insurance policy.

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