The party who becomes the first indorser of a note is generally the
a. payee.
b. maker.
c. drawer.
d. drawee.
A
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________ refers to a contract provision that designates a certain state's law or country's law that will be applied in any dispute concerning nonperformance of the contract.
A. Choice of law clause B. Forum-shopping C. Arbitration clause D. Forum selection clause
Firms' choices and estimates within U.S. GAAP or IFRS should be determined by all of the following except:
a. firms' underlying economic circumstances. b. conditions in the company's industry. c. the company's competitive strategy. d. accelerated management efforts to meet earnings projections.
Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price of $25 and some with a strike price of $35. Both options expire in three months. Which of the following best describes the value of these options?
A. The options with the $25 strike price will sell for less than the options with the $35 strike price. B. The options with the $25 strike price have an exercise value greater than $5. C. The options with the $35 strike price have an exercise value greater than $0. D. If Cazden's stock price rose by $5, the exercise value of the options with the $25 strike price would also increase by $5. E. The options with the $25 strike price will sell for $5.
Mom's Apple Pies (MAP) earned $500,000 this year. The company follows the residual dividend policy when paying dividends. MAP has determined that it needs a total of $600,000 for investment in capital budgeting projects this year. If the company's debt/asset ratio is 40 percent, what will its dividend payout ratio be this year? MAP has no preferred stock.
A. 40% B. 28% C. 72% D. 48% E. 52%