FIN 3000 CH 5&6
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The most common way to repay a loan is to pay
A fixed payment every period
The process of future valuing cash flows is know as
Compounding
The process of present valuing cash flows is know as
Discounting
The formula for present value is
FV/(1+i)^n
The concept of TVM is based on the principal that one dollar today is worth ______ than one dollar in the future
More than
Which of the following would provide the most information for investors about a company ?
ROE
Amortization is the process of paying off loans by regularly reducing the
principal