The appropriate discount rate that analysts use in computing the present value of future cash flows is composed of a pure interest rate increased to reflect expected inflation.What is this pure rate called?
A) risk-free rate.
B) real interest rate.
C) nominal interest rate.
D) none of the above.
Correct Answer:
Verified
Q2: In making long-term decisions about investing and
Q3: When is the discount rate used?
A)When determining
Q4: The appropriate discount rate that analysts use
Q5: Which of the following involves deciding which
Q6: What does the term capitalmean in the
Q7: Which of the following is an assumption
Q8: Which interest rate is used by analysts
Q9: Which of the following best identifies the
Q10: What does the term capital budgetingmean in
Q11: The appropriate discount rate that analysts use
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