hfnAAA罗斯公司理财题库全集.doc

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1、Chapter23-OptionsandCorporateFinance:ExtensionsandApplicationsChapter23OptionsandCorporateFinance:ExtensionsandApplicationsAnswerKey  MultipleChoiceQuestions 1. Theoptiontoabandonis: A. arealoption.B. usuallyoflittlevaluebecauseofthecostassociatedwithabandonment.C. irrelevantincapitalbud

2、getinganalysis.D. nearlyalwayslessrelevanttheoptiontoexpand.E. Alloftheabove. Difficultylevel:MediumTopic:OPTIONTOABANDONType:DEFINITIONS 2. Anexampleofaspecialoptionis: A. anexecutivestockoption.B. theembeddedoptioninastart-upcompany.C. theoptioninsimplebusinesscontracts.D. theoptiontos

3、hutdownandreopenaproject.E. Alloftheabove. Difficultylevel:MediumTopic:SPECIALOPTIONType:DEFINITIONS 23-11Chapter23-OptionsandCorporateFinance:ExtensionsandApplications3. Executivescannotexercisetheiroptionsforafixedperiodoftime.Thisisthe: A. investingperiod.B. freeze-outperiod.C. valuat

4、ionperiod.D. guaranteedgrowthperiod.E. strikeperiod. Difficultylevel:MediumTopic:FREEZE-OUTPERIODType:DEFINITIONS 4. TheNPVapproachmustbe: A. augmentedbyaddedanalysisifthereareafewembeddedoptions.B. augmentedbyaddedanalysisifadecisionhassignificantembeddedoptions.C. jettisonediftherearea

5、nyembeddedoptions.D. computedcarefullytoidentifytheoptions.E. Noneoftheabove. Difficultylevel:MediumTopic:EMBEDDEDOPTIONSType:CONCEPTS 5. Optionsaregrantedtotopcorporateexecutivesbecause: A. executiveswillmakebetterbusinessdecisionsinlinewithbenefitingtheshareholders.B. executivepayisatr

6、iskandlinkedtofirmperformance.C. optionsaretax-efficientandtaxedonlywhentheyareexercised.D. Alloftheabove.E. Noneoftheabove. Difficultylevel:MediumTopic:EXECUTIVEOPTIONSType:CONCEPTS 23-11Chapter23-OptionsandCorporateFinance:ExtensionsandApplications6. Thecalloptiononadividendpayingstock

7、comparedtoanon-dividendpayingstockis: A. morevaluablebecauseoftheextradividendpayment.B. equalinvaluebecausecashdividendsarepaidonstockonly.C. lessvaluablebecausecashdividendsarepaidonstockonly.D. lessvaluableifthedividendpayingstockisin-the-moneywhilethenon-dividendpayin