CFI MATH FOR CORPORATE FINANCE QUESTIONS WITH
DETAILED VERIFIED AND 100% ACCURATE ANSWERS
Annuity Correct Answers A series of payments in equal time periods,
guaranteed for a fixed number of years.
Annuity Factor Correct Answers Present value of $1 paid for each of t
periods.
Arithmetic Mean Correct Answers An average calculated by adding the
value of the points in the data set and dividing the sum by the number of
data points.
Constant Perpetuity Correct Answers A constant stream of identical cash
flows without end.
Correlation Correct Answers A statistical measure of how two securities
move in relation to each other.
Coupon Rate Correct Answers The amount of interest received by a
bond investor expressed on a nominal annual basis.
Covariance Correct Answers a statistical measure of the variance of two
random variables that are observed or measured in the same mean time
period.
, Current Yield Correct Answers The coupon rate from a bond divided by
the market price of the bond, expressed as a percentage.
Discount Factor Correct Answers The percentage rate required to
calculate the present value of a future cash flow.
Expected Value Correct Answers The predicted variable value,
calculated by adding all possible probability-weighted values together.
growing perpetuity Correct Answers A constant stream of cash flows
without end that is expected to rise indefinitely.
Moving Average Correct Answers Mean of time series data
(observations equally spaced in time) from several consecutive periods.
Called "moving" because it is continually recomputed as new data
becomes available.
Par Value Correct Answers The amount return to the bond investor by
the issuer upon maturity.
R Squared Correct Answers This is a statistical term saying how good
one term is at predicting another. Generally, a higher value of
____________ means that you can better predict one term from another.
regression analysis Correct Answers A statistical methodology that
attempts to determine the strength of the relationship between one
DETAILED VERIFIED AND 100% ACCURATE ANSWERS
Annuity Correct Answers A series of payments in equal time periods,
guaranteed for a fixed number of years.
Annuity Factor Correct Answers Present value of $1 paid for each of t
periods.
Arithmetic Mean Correct Answers An average calculated by adding the
value of the points in the data set and dividing the sum by the number of
data points.
Constant Perpetuity Correct Answers A constant stream of identical cash
flows without end.
Correlation Correct Answers A statistical measure of how two securities
move in relation to each other.
Coupon Rate Correct Answers The amount of interest received by a
bond investor expressed on a nominal annual basis.
Covariance Correct Answers a statistical measure of the variance of two
random variables that are observed or measured in the same mean time
period.
, Current Yield Correct Answers The coupon rate from a bond divided by
the market price of the bond, expressed as a percentage.
Discount Factor Correct Answers The percentage rate required to
calculate the present value of a future cash flow.
Expected Value Correct Answers The predicted variable value,
calculated by adding all possible probability-weighted values together.
growing perpetuity Correct Answers A constant stream of cash flows
without end that is expected to rise indefinitely.
Moving Average Correct Answers Mean of time series data
(observations equally spaced in time) from several consecutive periods.
Called "moving" because it is continually recomputed as new data
becomes available.
Par Value Correct Answers The amount return to the bond investor by
the issuer upon maturity.
R Squared Correct Answers This is a statistical term saying how good
one term is at predicting another. Generally, a higher value of
____________ means that you can better predict one term from another.
regression analysis Correct Answers A statistical methodology that
attempts to determine the strength of the relationship between one
