罗斯公司理财全英文题库及答案

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1、Chapter 04 Discounted Cash Flow Valuation Answer Key Multiple Choice Questions 1. An annuity stream of cash flow payments is a set of: A. level cash flows occurring each time period for a fixed length of time.B. level cash flows occurring each time period forever.C.

2、0;increasing cash flows occurring each time period for a fixed length of time.D. increasing cash flows occurring each time period forever.E. arbitrary cash flows occurring each time period for no more than 10 years.Difficulty level: EasyTopic: ANNUITYType: DEFINITIONS 2. Annuitie

3、s where the payments occur at the end of each time period are called _, whereas _ refer to annuity streams with payments occurring at the beginning of each time period. A. ordinary annuities; early annuitiesB. late annuities; straight annuitiesC. straight annuities; late annuitie

4、sD. annuities due; ordinary annuitiesE. ordinary annuities; annuities dueDifficulty level: EasyTopic: ANNUITIES DUEType: DEFINITIONS 3. An annuity stream where the payments occur forever is called a(n): A. annuity due.B. indemnity.C. perpetuity.D. amortiz

5、ed cash flow stream.E. amortization table.Difficulty level: EasyTopic: PERPETUITYType: DEFINITIONS 4. The interest rate expressed in terms of the interest payment made each period is called the _ rate. A. stated annual interestB. compound annual interestC. effectiv

6、e annual interestD. periodic interestE. daily interestDifficulty level: EasyTopic: STATED INTEREST RATESType: DEFINITIONS 5. The interest rate expressed as if it were compounded once per year is called the _ rate. A. stated interestB. compound interestC. effec

7、tive annualD. periodic interestE. daily interestDifficulty level: EasyTopic: EFFECTIVE ANNUAL RATEType: DEFINITIONS 6. The interest rate charged per period multiplied by the number of periods per year is called the _ rate. A. effective annualB. annual percentageC.&

8、#160;periodic interestD. compound interestE. daily interestDifficulty level: EasyTopic: ANNUAL PERCENTAGE RATEType: DEFINITIONS 7. Paying off long-term debt by making installment payments is called: A. foreclosing on the debt.B. amortizing the debt.C. funding

9、the debt.D. calling the debt.E. None of the above.Difficulty level: EasyTopic: AMORTIZATIONType: DEFINITIONS 8. You are comparing two annuities which offer monthly payments for ten years. Both annuities are identical with the exception of the payment dates. Annuity A pays on the

10、first of each month while annuity B pays on the last day of each month. Which one of the following statements is correct concerning these two annuities? A. Both annuities are of equal value today.B. Annuity B is an annuity due.C. Annuity A has a higher future value than annuity B

11、.D. Annuity B has a higher present value than annuity A.E. Both annuities have the same future value as of ten years from today.Difficulty level: MediumTopic: ORDINARY ANNUITY VERSUS ANNUITY DUEType: CONCEPTS 9. You are comparing two investment options. The cost to invest in eith