The call option in a bond has a greater chance of being exercised (to the detriment of the bondholder) if market interest rates have fallen since the bond was issued.

a. True

b. False

What is one way GDP could be measured?

Which of the eight diagnostic steps for locating an engine performance problem is performed first

A collar is established by buying a share of stock for $50, buying a 6-month put option with exercise price $43, and writing a 6-month call option with exercise price $57.

Scarlett Corp. uses no debt. The weighted average cost of capital is 6.4 percent. The current market value of the equity is $27 million and the corporate tax rate is 35 percent. What is EBIT? (Enter your answer in dollars, not millions of dollars, e.

Which of the following best describes the Net Present Value rule? A) When choosing among any list of investment opportunities where resources are limited, always choose those projects with the highest net present value (NPV).

Sugar, Inc. sells $529,300 of goods during the year that have a cost of $428,600. Inventory was $30,083 at the beginning of the year and $34,338 at the end of the year.

Assume that Jack and Hal and Sophia enter into a contract for the sale of the restaurant. Hal and Sophia, for their own protection, put a clause in the contract that says the sale is contingent upon an independent appraisal indicating that the

One of Simplex Company's products has a contribution margin of $44,000 and fixed costs totaling $54,000. If the product is dropped, $37,000 of the fixed costs will continue unchanged.

When technology spillover occurs, a. those firms engaged in technology research should be taxed by the government. b. a firm's research yields technological knowledge that can then be used by society as a whole. c.

Shot-term financial goals include saving for