1. The formula for calculating the present value (PV) of a perpetuity is PV = PP/(1 + i), where PP is the perpetuity payment and i is the discount rate. a. true b. False
2. Common stock represents ownership of the firm. a. true b. False
3. A mortgage bond is secured by a lien on real property. a. true b. False
4. Par value is the present value of all future cash flows due to be received from a bond. a. true b. False