Question 4 what is the present value of 6811 to be

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• Question 4 What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent ?A. $6,395.31B. $7,253.72C. $6,023.58D. $6,643.29E. $6,671.13
• Question 5 Under the____________ method, the underwriter buys the securities for less than the offering price and accepts the risk of not selling the issue, while under the _________ method, the underwriter does not purchase the shares but merely acts as an agent.
Question 6 All else held constant, interest rate risk will increase when the time to maturity:
Question 7 The process of planning and managing a firm’s long-term assets is called:
Question 8 An efficient capital market is one in which:A.Securities always offer a positive NPV.B.Taxes are irrelevant.C.All investments earn the market rate of return.D.Brokerage commissions are zero.E.Security prices reflect all available information.
Question 9 Which one of these statements is correct concerning the cash cycle?
Question 10 The costs of avoiding a bankruptcy filing by a financially distressed firm are classified as _______ costs.

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