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A pension plan that grants mortgage loans

Bonds may be retired prior to maturity by 1. repurchases2. a sinking fund3. a call feature

During most historical periods, the yield curve has been positively sloped.​

If the capital asset pricing model is used, the cost of equity depends on 1. the firm’s earnings growth rate 2. the firm’s beta 3. the return on the market

The percent of sales method of forecasting assumes that fixed assets vary proportionately with sales.​

Discounting refers to the process of bringing the future back to the present.​

The percent of sales method of forecasting assumes that fixed assets vary proportionately with sales.​

​The more frequently interest is compounded, the larger will be the final or terminal amount.

Retained earnings represents the earnings accumulated by the firm over its life.​

Because interest is a tax-deductible expense, the effective cost of debt is less than the stated rate of interest.