All other things held constant, premiums on both put and call options will increase when the
A) exercise price increases.
B) volatility of the underlying asset increases.
C) term to maturity decreases.
D) futures price increases.
B
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Using a popular song in an advertisement:
A) does not have as much of an effect as writing a new tune B) transfers the emotional affinity for the song to the product C) creates brand parity D) interferes with brand recall ability
The amount of interest that can be capitalized for a qualifying asset is the lesser of the amount considered as avoidable interest costs or actual interest cost
Indicate whether the statement is true or false
All of the following statements related to preparation of the statement of cash flows are true except:
A. A company may report cash flows from operating activities using either the direct or indirect method. B. Interest expense may be reported under operating or financing based on which one results in better cash flows. C. Cash dividends paid to shareholders are classified as a financing activity. D. Repaying the principal of notes payable is classified as a financing activity. E. Purchase of an intangible asset is classified as an investing activity.
Beige Inc. plans to issue preferred stock that pays an $11.50 dividend per share and sells for $120 per share in the market. It will cost 4 percent, or $4.80 per share, to issue the new preferred stock, so Beige will net $115.20 per share. Which of the following is Beige's cost of preferred stock? (Round off the answer to two decimal places.)?
A. ?8.89 percent B. ?12.25 percent C. ?11.50 percent D. ?15.20 percent E. ?9.98 percent