rate which is divided by compounding periods to calc... - Solved MCQs & Answer

620FinanceMedium

rate which is divided by compounding periods to calculate periodic rate must be___________________?

ASemiannual discount rate

BDeferred annuity return

CAnnuity return

DNominal rate

Correct answer

D. Nominal rate

Explanation

Nominal rate is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Net income is $2250 and non cash charges are $1150 then net cash flow would be _________?

The profitability index in capital budgeting is used for __________?

Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?