18. You are comparing two annuities that pay cash annually for twelve years. The annuities are...
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18. You are comparing two annuities that pay cash annually for twelve years. The annuities are identical except for the payment dates. Annuity A pays on the last day of each year but annuity B pays on the first day of each year. Which of the these statements is correct: a. Annuity A has a higher future value than annuity B. b. Both annuities are of equal value today. c. Annuity A is an annuity due. d. Annuity B has a higher present value than annuity A. e. Both annuities have the same future value as of twelve years from now. 19. What is meant by a firm's internal growth rate? a. Fastest rate its assets can grow without using external financing. b. Slowest rate its assets can grow without using external financing. c. Fastest rate its assets can grow without using external equity. c. Fastest rate its assets can grow without decreasing financial leverage. e. Slowest rate its assets can grow without changing financial leverage. 20. A rate of return of 9.53% can be verbally expressed as: a. "9 point 53 percent " b. “ 9 percent and 53 basis points ". c. "9 pps and 53 bps ". c. “ 953 basis points ". e. All of the above are correct. 18. You are comparing two annuities that pay cash annually for twelve years. The annuities are identical except for the payment dates. Annuity A pays on the last day of each year but annuity B pays on the first day of each year. Which of the these statements is correct: a. Annuity A has a higher future value than annuity B. b. Both annuities are of equal value today. c. Annuity A is an annuity due. d. Annuity B has a higher present value than annuity A. e. Both annuities have the same future value as of twelve years from now. 19. What is meant by a firm's internal growth rate? a. Fastest rate its assets can grow without using external financing. b. Slowest rate its assets can grow without using external financing. c. Fastest rate its assets can grow without using external equity. c. Fastest rate its assets can grow without decreasing financial leverage. e. Slowest rate its assets can grow without changing financial leverage. 20. A rate of return of 9.53% can be verbally expressed as: a. "9 point 53 percent " b. “ 9 percent and 53 basis points ". c. "9 pps and 53 bps ". c. “ 953 basis points ". e. All of the above are correct.
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18 Since payments are made sooner with an annuity beginning than with an annuity end ... View the full answer
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
Posted Date:
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