Allman, Inc, enters into a call option contract with Betts Investment Co on January 2, 2014 . This contract gives Allman the option to purchase 1,000 shares of Upmann stock at $100 per share. The option expires on April 30, 2014 . Upmann shares are trading at $100 per share on January 2, 2014, at which time Allman pays $200 for the call option. Using the information above, assume that the price
of the Upmann shares has risen to $130 per share on March 31 . 2014, and the Hall is preparing financial statements for the quarter ending March 31 . As regards this option, Hall, Inc, would report which of the following?
a. A $30,000 realized gain
b. A $30,000 unrealized gain
c. A deferred gain of $29,800
d. Nothing would be reported in the financial statements or the notes thereto.
C
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A company that uses leverage is attempting to earn an overall return that is higher than the cost of funds received from
a. preferred and common stockholders. b. common stockholders only. c. preferred stockholders and borrowed funds. d. borrowed funds only.
Flotation costs
A) are incurred when investors fail to cash their dividend check. B) are encountered whenever a firm fails to pay a dividend. C) encourage firms to pay large dividends. D) include the fees paid to the investment bankers, lawyers, and accountants involved in selling a new security issue.
Explain what a candidate key is and how it might be used
What will be an ideal response?
___________________ can be used to partition observations in a manner to obtain clusters with the least amount of information loss due to the aggregation
a. Single linkage b. Ward's method c. Average group linkage d. Dendrogram