罗斯公司理财Chap004全英文题库及答案.doc.docx

Chapter 04 Chapter 04 - Discounted Cash Flow Valuation 4- 4- PAGE # Chapter 04 Disco un ted Cash Flow ValuationA nswer Key Multiple Choice Questions An ann uity stream of cash flow payme nts is a set of: level cash flows occurring each time period for a fixed length of time. level cash flows occurring each time period forever. increasing cash flows occurring each time period for a fixed length of time. in creas ing cash flows occurri ng each time period forever. arbitrary cash flows occurring each time period for no more than 10 years. Difficulty level: Easy Topic: ANNUITY Type: DEFINITIONS Ann uities where the payme nts occur at the end of each time period are called , whereas refer to ann uity streams with payme nts occurri ng at the beg inning of each time period. ordinary annuities; early annuities late annu ities; straight ann uities straight annu ities; late ann uities ann uities due; ordinary annu ities ordinary annuities; annuities due Difficulty level: Easy Topic: ANNUITIES DUE Type: DEFINITIONS An annuity stream where the payme nts occur forever is called a(n): annuity due. i ndemn ity. perpetuity. amortized cash flow stream. amortizati on table. Difficulty level: Easy Topic: PERPETUITY Type: DEFINITIONS The interest rate expressed in terms of the interest payment made each period is called the rate. stated annual in terest compo und annual in terest effective annual in terest periodic in terest daily in terest Difficulty level: Easy Topic: STATED INTEREST RATES Type: DEFINITIONS The interest rate expressed as if it were compounded once per year is called the rate. stated in terest compo und in terest effective annual periodic in terest daily in terest Difficulty level: Easy Topic: EFFECTIVE ANNUAL RATE Type: DEFINITIONS The in terest rate charged per period multiplied by the nu mber of periods per year is called the rate. effective annual annual percentage periodic in terest compo und in terest daily in terest Difficulty level: Easy Topic: ANNUAL PER