Relationship between present and future value


Problem 1: Is a dollar today worth more than a dollar tomorrow? Why or why not? What is the relationship between present and future value?

Problem 2: What impact does a company's bond rating have on its cost of capital? What is the relationship between interest rates and bond prices?

Problem 3: Should a company have more debt or more equity in its capital structure? Explain your answer. What are some limitations of utilizing debt vs. equity in the capital structure?

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Finance Basics: Relationship between present and future value
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