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    Corporate Finance Core
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    Exam 4: Discounted Cash Flow Valuation
  5. Question
    Assume a Stated Rate of Interest of 8 Percent
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Assume a Stated Rate of Interest of 8 Percent

Question 25

Question 25

Multiple Choice

Assume a stated rate of interest of 8 percent.Which form of compounding will produce the highest effective rate of interest?


A) Daily
B) Annual
C) Continuous
D) Monthly
E) Semiannual

Correct Answer:

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