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.
Answer:
You must deposit $14,824.07
Explanation:
Giving the following information:
Sister:
Investment= $14,000
Interest rate= 10.5%
Number of years= 9
You:
Investment=?
Interest rate= 9.8%
Number of years= 9
First, we need to calculate the future value of your sister:
FV= PV*(1+i)^n
FV= 14,000*(1.105^9)= $34,386.55
Now, we can determine your deposit:
PV= FV/(1+i)^n
PV= 34,386.55/ (1.098^9)= $14,824.07
Answer: S-1
Explanation:
According to the the securities and exchange commissions, the S-1 is the registration under the SEC act of 1933. Whereby a company file form S-1 in anticipation of IPO (initial public offering).The company must be small reporting company with $25 million of annual revenues and of $25 million of voting securities held by non-affiliates.
Answer: Forecasting is exclusively an objective prediction.
Explanation: In simple words, the process of predicting any future event by analyzing the past data is called the forecasting. The factors that an analyst takes from the past could be both qualitative and quantitative.
The forecasting process is done for a specified period and not for infinity. In other words, it is the study of trends and predicting how these trends could change in the future.
Hence from the above we can conclude that the correct option is B.
