6. Which of the following is/are accurate? All else equal, I. present values inc
ID: 2651297 • Letter: 6
Question
6. Which of the following is/are accurate? All else equal, I. present values increase as the discount rate increases II. present values increases the further away in time the future value is III. present values are always equal to future values when either the interest rate and or the number of years is zero. A) I only B) I and II only CO II only DO III only E) II and III only 7. is the actual amount each common stockholder would expect to receive if the firm's assets are sold for their market values, creditors and preferred stockholder are repaid, and any remaining money is divided among the common stockholders. A) Liquidation value B) Book value C) The P/E multiple D) The present value of the dividendsExplanation / Answer
Answer:6 D) III only
Answer:7 (A) Liquidation value
Liquidation value is the actual amount each common stockholder would expect to receive if the firm's assets are sold, creditors and preferred stockholders are paid, and any remaining money is divided among the common stockholders.
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