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In an ordinary annuity, the payments are made at the beginning of the year.​

A cash budget seeks to determine estimated costs and revenues in order to forecast earnings.​

A cash budget seeks to determine estimated costs and revenues in order to forecast earnings.​

One type of risk adjustment alters the firm’s cost of capital for the probability of occurrence.​

The interest paid by federal government bonds is not subject to federal income taxation.​

Dividend reinvestment plans are

Dividend reinvestment plans permit the stockholder to reinvest dividends as they are received.​

If a firm issues long‑term debt and uses the proceeds to retire short‑term debt, the current ratio is unaffected.​

Debt instruments subject their owners to risk from​ 1. loss of purchasing power 2. higher credit ratings 3. default

If profit margins increase as sales increase, the need for external finance is reduced.​