文档介绍：CHAPTER 4 Discounted Cash Flow Valuation Multiple Choice Questions: I. DEFINITIONS ANNUITY a 1. An annuity stream of cash flow payments isa set of: a. level cash flows occurring each time period for a fixed length of time. b. level cash flows occurring each time period forever. c. increasing cash flows occurring each time period for a fixed length of time. d. increasing cash flows occurring each time period forever. e. arbitrary cash flows occurring each time period for no more than 10 years. Difficulty level: Easy ANNUITIES DUE e 2. Annuities where the payments occur at the end of each time period are called _____ , whereas _____ refer to annuity streams with payments occurring at the beginning of each time period. a. ordinary annuities; early annuities b. late annuities; straight annuities c. straight annuities; late annuities d. annuities due; ordinary annuities e. ordinary annuities; annuities due Difficulty level: Easy PERPETUITY c 3. An annuity stream where the payments occur forever is called a(n): a. annuity due. b. indemnity. c. perpetuity. d. amortized cash flow stream. e. amortization table. Difficulty level: Easy STATED INTEREST RATES a 4. The interest rate expressed in terms of the interest payment made each period is called the _____ rate. a. stated annual interest b. compound annual interest c. effective annual interest d. periodic interest e. daily interest Difficulty level: Easy EFFECTIVE ANNUAL RATE c 5. The interest rate expressed as if it pounded once per year is called the _____ rate. a. stated interest b. compound interest c. effective annual d. periodic interest e. daily interest Difficulty level: Easy ANNUAL PERCENTAGE RATE b 6. The interest rate charged per period multiplied by the number of periods per year is called the _____ rate. a. effective annual b. annual percentage c. periodic interest d. compound interest e. daily interest Difficulty level: Easy II. CONCEPTS ORDINARY ANNUITY VERSUS ANNUITY DUE c 7. You paring two annuities which of