An Annuity Factor

question 54

Multiple Choice

An annuity factor:

• A) can be used to determine the present value of a level stream of payments.
• B) consists entirely of maturation and interest.
• C) is a variable that can never be greater than one.
• D) is any factor that affects the price of a bond.

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Definitions:

Stockholder

An individual or entity that owns shares in a corporation and therefore has a claim on part of its assets and earnings.

Share Price

The price of a single share of a company's stock in the stock market.

Consistent Dividends

Regular and predictable payments made by a company to its shareholders out of its profits.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period, to identify trends and changes.