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Svetllana [295]
3 years ago
9

If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to _____

on the assets of the firm.a.purchasing a put optionb.purchasing a call optionc.exercising an in-the-money put optiond.exercising an in-the-money call optione.selling a call option
Business
1 answer:
snow_tiger [21]3 years ago
3 0

Answer: The correct option is "c.exercising an in-the-money put option".

Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.

because he would be paying the debt with the participation in the equity of the company.

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Agree

Explanation:

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3 years ago
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Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchase
Savatey [412]

Answer:

The correct option is B.

Explanation:

It is given that Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August.

Purchase in July = $180,000

Purchase in August = $210,000

Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.

In August, the cash disbursements for materials purchases be 3/4th of $210,000 (Purchase in August) and 1/4  of $180,000 (Purchase in July).

August's cash disbursements for materials purchases be

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4 0
3 years ago
You read an article in a news magazine that explains how the economy expanded for several years, and then went into a period of
mart [117]
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</span>I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!
7 0
3 years ago
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Kobotan [32]

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Reclaiming

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The statement is True.

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Budgeted financial statements are prepared for a future period of time. So that it is easy to anticipate certain fixed and variable costs and allocate financial resources to them.

Also, Budgeted financial statement are useful during the strategic planning process and planning on future business expansions.

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