SOLUTIONS MANUAL CHAPTER 15 PUT AND CALL OPTIONS PROBLEMS Exercise (strike) price 1. A stock has an exercise (strike) price of $40. a. If the stock price goes to $41.50‚ is the exchange likely to add a new strike price? b. If the stock price goes to $42.75 is the exchange likely to add a new strike price? 15-1. a) No. For stocks over $25‚ the normal interval is $5‚ with a new strike price added at the halfway point or $42.50 (between $40 and $45). b) Yes‚ the stock price has equaled or exceeded
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Review Questions 1. A friend of yours has asked which version of Windows 7 should be purchased to start a new multimedia-based home entertainment system. Your friend will not require business support features‚ but they will require support communicating with their Xbox 360. You recommend: a.Windows 7 Ulitmate b.Windows 7 Home Basic c.Windows 7 Home Premium d.Windows 7 Enterprise 2. Windows 7 supports only cooperative multitasking. True or False? 3. The Graphical Processing Unit is a hardware
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Chapter 19 Completing the Audit / Postaudit Responsibilities |Learning Check | 19-1. The three categories of activities in completing the audit are (a) completing field work‚ (b) evaluating the findings‚ and (c) communicating with the client. 19-2. The activities involved in completing the field work are (a) making subsequent events review‚ (b) reading minutes of meetings‚ (c) obtaining evidence concerning litigation‚ claims‚ and assessments‚ (d) obtaining
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I watched Deborah Gruenfeld’s video before reading chapter 7 and again after completing the chapter. My perception was not the same after watching the video for the second time. I noticed her gestures‚ eloquence‚ posture and mode of dressing and I realized that although she was talking about how to convey power and influence‚ she was conveying what Pfeffer talked about in chapter 7 as “acting with power”. Gruenfeld expressed confidence as she was lecturing and her posture and gestures was like Pfeffer
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Solutions to Valuation Questions 1. Assume you expect a company’s net income to remain stable at $1‚100 for all future years‚ and you expect all earnings to be distributed to stockholders at the end of each year‚ so that common equity also remains stable for all future years (assumes clean surplus). Also‚ assume the company’s β = 1.5‚ the market risk premium is 4% and the 20-30 year yield on risk free treasury bonds is 5%. Finally‚ assume the company has 1‚000 shares of common stock outstanding.
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Solutions for Review Problems of Chapter 14 1. a. Given the following diagram for a product‚ determine the quantity of each component required to assemble one unit of the finished product. b. Draw a tree diagram for the stapler: a. F: 2 J: 2 x 2 = 4 D: 2 x 4 = 8 G: 1 L: 1 x 2 = 2 J: 1 x 2 = 2 H: 1 A: 1 x 4 = 4 D: 1 x 2 = 2 Totals: F = 2; G = 1; H = 1; J = 6; D = 10; L = 2; A = 4 b. Stapler Top Assembly Base Assembly Cover Spring Slide Assembly Base Strike Pad Rubber Pad 2 Slide
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CAPITAL BUDGETING PROBLEMS: CHAPTER 11 Answers to Warm-Up Exercises E11-1. Categorizing a firm’s expenditures Answer: In this case‚ the tuition reimbursement should be categorized as a capital expenditure since the outlay of funds is expected to produce benefits over a period of time greater than 1 year. E11-2. Classification of project costs and cash flows Answer: $3.5 billion already spent—sunk cost (irrelevant) $350 million incremental cash outflow—relevant cash flow $15 million per year cash
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The Great Gastby – Chapter 7 Summary • Daisy’s been visiting Gatsby regularly – he’s dismissed servant to stop gossip from spreading. • On the hottest day of summer‚ Nick and Gatsby have lunch with the Buchanans. They meet Pammy‚ Daisy’s daughter. Tom notices that Daisy and Gatsby are in love. • They drive to New York: Tom takes Nick and Jordan‚ Gatsby travels with Daisy • Tom stops for petrol at George Wilson’s garage and is startles to discover that the Wilsons plan to travel west. • Tom
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Chapter 2 Auditing IT Governance Controls Review Questions 1. What is IT governance? Response: IT governance is a relatively new subset of corporate governance that focuses on the management and assessment of strategic IT resources. 2. What are the objectives of IT governance? Response: The key objectives of IT governance are to reduce risk and ensure that investments in IT resources add value to the corporation. 3. What is distributed data processing? Response: Distributed
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Chapter 04 Analyzing Investing Activities Multiple Choice Questions 1. Which of the following would rarely be classified as a current asset? A. Prepaid insurance B. Goodwill C. Marketable Securities D. Work-in-progress 2. Which of the following would not be classified as a current asset? A. Inventory B. Accounts payable C. Accounts receivable D. Prepaid expenses 3. An asset is considered to be liquid if: A. it is readily converted into a current asset. B. it is
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