Capital typically by issuing bonds rather than selling stock

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Reference no: EM132010444

1. What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 4%?

a) $21,899.42

b) $24,625.42

c) $17,705.88

d) $17,909.40

e) $20,351.59

2. Companies raise needed capital typically by issuing bonds rather than selling stocks.

a) True

b) False

3. What is the PV of an annuity due with 10 payments of $2,700 if the appropriate interest rate is 6%?

a) $21,899.42

b) $21,064.57

c) $22,775.40

d) $17,909.40

e) $20,351.59

Reference no: EM132010444

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