If the price on a 1 year forward contract is $65.92, which of the following prepaid forward contracts on a non-dividend paying stock does NOT represent an arbitrage opportunity if the annual required rate of return on the stock is 8.4%?
A)
$ 62.56
B)
$ 60.61
C)
$ 64.52
D)
$ 71.70
Answer:
B
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A lessee wants to lease an asset on a long-term noncancelable basis, but wants to avoid capitalizing the lease. The lessee is considering the following strategies to accomplish its objective: 1 . Use a lessee guarantee of residual value. 2 . Make it impossible for the lessee (which has a very low borrowing rate) to determine the lessor's implicit rate, which is much higher the lessee's borrowing
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Patents for inventions are valid for 10 years
Indicate whether the statement is true or false
If a taxpayer's method of accounting does not clearly reflect income, the IRS may specify a different accounting method which must be used by the taxpayer.
Answer the following statement true (T) or false (F)