b6d83f54_l_Review_Flashcards___Cram_com___using_dividend_growth_model__
D is correct. The future value of a dollar is its value at a time in the future given its present value. The future value of a dollar is affected both by the discount rate and the time at which the dollar is received. Hence, both dollars-in and dollars-out in the future may be adjusted for the discount rate and any compounding that may occur.
Future value is best described as A. The value of a dollar-in at a future time adjusted for any compounding effect B. The sum of dollars-in discounted to time zero. C. The sum of dollars-out discounted to time zero. D. The value of a dollar-in at a future time adjusted for any compounding effect and the value of a dollar-out at a future time adjusted for any compounding effect.
Final Review Flashcards - Cram.com