Which of the following are true of employee stock options?

A. They are commonly valued as though they are regular American options
B. They are commonly valued as though they are regular American options, but with a reduced life.
C. They are commonly valued as though they are regular European option
D. They are commonly valued as though they are regular European options but with a reduced life.


D

They are commonly valued using Black-Scholes-Merton (i.e. as European options) but with a reduced life to reflect early exercise behavior

Business

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Tropical Co declared a cash dividend of $30,000 . The entry includes a(n)

a. decrease to Cash of $30,000. b. increase to Retained Earnings of $30,000. c. decrease to Retained Earnings of $30,000. d. decrease to Cash Dividend Payable of $30,000.

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In order to help his daughter Pamela secure a loan for her new business, Rich promised the bank that he would also be liable for the payment of Pamela's loan. Which of these is NOT a term that describes Rich's role in this transaction?

A. surety B. accommodation party C. co-signer D. security

Business

When firms promote products to their own employees as part of an internal marketing effort, they are using a ________ approach.

A. telemarketing B. personal selling C. pushing D. pulling E. digital marketing

Business

For 2018, high-income taxpayers do not have to forfeit part of their itemized deductions.

Answer the following statement true (T) or false (F)

Business