<< Prev Question Next Question >>

Question 26/136

The value of a call option will increase because of:

LEAVE A REPLY

Your email address will not be published. Required fields are marked *

Question List (136q)
Question 1: An all equity financed company plans an issue of new ordinar...
Question 2: A company's current earnings before interest and taxation ar...
Question 3: A company is concerned about the interest rate that it will ...
Question 4: Company X plans to acquire Company Y. Pre-acquisition inform...
Question 5: A national rail operating company has made an offer to acqui...
Question 6: Company Z has identified four potential acquisition targets:...
Question 7: A UK company enters into a 5 year borrowing with bank P at a...
Question 8: A company intends to sell one of its business units, Company...
Question 9: A listed company plans to raise new capital which will be re...
Question 10: A government is currently considering the privatisation of t...
Question 11: Company A, a listed company, plans to acquire Company T, whi...
Question 12: A company generates operating profit of $17.2 million, and i...
Question 13: An unlisted company is attempting to value its equity using ...
Question 14: Which THREE of the following statements are true of a money ...
Question 15: For which THREE of the following risk categories does IFRS 7...
Question 16: Company A, a listed company, plans to acquire Company T, whi...
Question 17: Company B is an all equity financed company with a cost of e...
Question 18: A listed company is considering either a one-off special div...
Question 19: Company HJK is planning to bid for listed company BNM Financ...
Question 20: An unlisted software development business is to be sold by i...
Question 21: A listed company is financed by debt and equity. If it incre...
Question 22: A company has identified potential profitable investments th...
Question 23: Company Z has just completed the all-cash acquisition of Com...
Question 24: A company has announced a rights issue of 1 new share for ev...
Question 25: Two companies that operate in the same industry have differe...
Question 26: The value of a call option will increase because of:...
Question 27: A company has an opportunity to invest in a positive net pre...
Question 28: Country X's short-term interest rates are slightly higher th...
Question 29: A listed entertainment and media company produces and distri...
Question 30: A large, quoted company that is all-equity financed is plann...
Question 31: A company is considering whether to lease or buy an asset. T...
Question 32: M is an accountant who wishes to take out a forward rate agr...
Question 33: A manufacturing company is based in Country L whose currency...
Question 34: Z wishes to borrow at a floating rate and has been told that...
Question 35: Which of the following best explains why the interest rate p...
Question 36: Company A has made an offer to acquire Company Z. Both compa...
Question 37: A company has in a 5% corporate bond in issue on which there...
Question 38: A company is planning a new share issue. The funds raised wi...
Question 39: HHH Company has a fixed rate loan at 10.0%, but wishes to sw...
Question 40: A company currently has a 6.25% fixed rate loan but it wishe...
Question 41: On 31 October 20X3: * A company expected to agree a foreign ...
Question 42: A company plans to raise finance for a new project. It is co...
Question 43: A company has undertaken a transaction with its shareholders...
Question 44: A listed company follows a policy of paying a constant divid...
Question 45: An unlisted company wishes to obtain an estimated value for ...
Question 46: A company is valuing its equity prior to an initial public o...
Question 47: Which three of the following are most likely be primary obje...
Question 48: A company is concerned that a high proportion of its debt po...
Question 49: A company gas a large cash balance but its directors have be...
Question 50: A company has: * A price/earnings (P/E) ratio of 10. * Earni...
Question 51: A company has: * $7 million market value of equity * $5 mill...
Question 52: An unlisted company. * Is owned by the original founders and...
Question 53: A company has a cash surplus which it wishes to distribute t...
Question 54: A company's directors plan to increase gearing to come in li...
Question 55: An all equity financed company reported earnings for the yea...
Question 56: Company X is an established, unquoted company which provides...
Question 57: A company is planning a share repurchase programme with the ...
Question 58: An aerospace company is planning to diversify into car manuf...
Question 59: Company C has received an unwelcome takeover bid from Compan...
Question 60: A venture capitalist invests in a company by means of buying...
Question 61: A company with 4 million shares in issue wishes to raise $4 ...
Question 62: Which THREE of the following remain unchanged over the life ...
Question 63: A listed company has suffered a period of falling revenues a...
Question 64: Company Y plans to diversify into an activity where Company ...
Question 65: The following information relates to Company A's current cap...
Question 66: A company has just received a hostile bid. Which of the foll...
Question 67: The Government of Eastland is concerned that competition wit...
Question 68: MAN is a manufacturing company that is based in country M an...
Question 69: A company's gearing (measured as debt/(debt + equity)) is cu...
Question 70: Company BBB has prepared a valuation of a competitor company...
Question 71: A listed company plans to raise $350 million to finance a ma...
Question 72: The Treasurer of Z intends to use interest rate options to s...
Question 73: CI IJ has decided to move its production plant to overseas c...
Question 74: Which of the following statements best describes a residual ...
Question 75: A listed publishing company owns a subsidiary company whose ...
Question 76: At the last financial year end, 31 December 20X1, a company ...
Question 77: Company P is a pharmaceutical company listed on an alternati...
Question 78: A company is planning to issue a 5 year $100 million bond at...
Question 79: A company is considering either directly exporting its produ...
Question 80: Companies A, B, C and D: * are based in a country that uses ...
Question 81: A company currently has a 5.25% fixed rate loan but it wishe...
Question 82: Company AB was established 6 years ago by two individuals wh...
Question 83: A company is based in Country Y whose functional currency is...
Question 84: The Board of Directors of Company T is considering a rights ...
Question 85: Company T has 1,000 million shares in issue with a current s...
Question 86: ZZZ is a listed company based in Brinland. a European countr...
Question 87: Which of the following would be a reason for a company to ad...
Question 88: A company has 8% convertible bonds in issue. The bonds are c...
Question 89: Company R is a well-established, unlisted, road freight comp...
Question 90: A company is wholly equity funded. It has the following rele...
Question 91: Providers of debt finance often insist on covenants being en...
Question 92: Two unlisted companies TTT and YYY are being valued. The com...
Question 93: Which THREE of the following would be most important if a ho...
Question 94: The directors of a unlisted manufacturing company have prepa...
Question 95: A company has some 7% coupon bonds in issue and wishes to ch...
Question 96: A company has forecast the following results for the next fi...
Question 97: A company's Board of Directors is assessing the likely impac...
Question 98: Company M is a listed company in a highly technical service ...
Question 99: A profitable company wishes to dispose of a loss-making divi...
Question 100: H Company has a fixed rate load at 10.0%, but wishes to swap...
Question 101: Company A plans to acquire a minority stake in Company B. Th...
Question 102: Using the CAPM, the expected return for a company is 10%. Th...
Question 103: A new company was set up two years ago using the personal fi...
Question 104: NNN is a company financed by both equity and debt. The direc...
Question 105: A company is currently all-equity financed with a cost of eq...
Question 106: WX, an advertising agency, has just completed the all-cash a...
Question 107: Company A has made an offer to take over all the shares in C...
Question 108: The Board of Directors of a small listed company engaged in ...
Question 109: An unlisted company: Is owned by the original founder and me...
Question 110: A wholly equity financed company has the following objective...
Question 111: Company T is a listed company in the retail sector. Its curr...
Question 112: Company A has agreed to buy all the share capital of Company...
Question 113: Company AAB is located in country A whose currency is the AS...
Question 114: A company is considering a divestment via either a managemen...
Question 115: A company's Board of Directors is considering raising a long...
Question 116: Which THREE of the following statements are correct in respe...
Question 117: A company generates and distributes electricity and gas to h...
Question 118: Company M's current profit before interest and taxation is $...
Question 119: Company A is unlisted and all-equity financed. It is trying ...
Question 120: A company intends to sell one of its business units. Company...
Question 121: A product costs USD10 when purchased in the USA. The same pr...
Question 122: Which THREE of the following are benefits of integrated repo...
Question 123: Holding cash in excess of business requirements rather than ...
Question 124: Company A is planning to acquire Company B by means of a cas...
Question 125: A consultancy company is dependent for profits and growth on...
Question 126: A company needs to raise $20 million to finance a project. I...
Question 127: A company needs to raise $20 million to finance a project. I...
Question 128: ZZZ wishes to borrow at a floating rate and has been told th...
Question 129: A company is financed as follows: * 400 million $1 shares qu...
Question 130: Company ABC's management has noticed that Company BCD has qu...
Question 131: A company is planning to repurchase some of its shares. Rele...
Question 132: RST wishes to raise at least $40 million of new equity by is...
Question 133: Company A is planning to acquire Company B. Company A's mana...
Question 134: A company with a market capitalisation of S50million is cons...
Question 135: A listed company is planning a share repurchase. Research in...
Question 136: Which of the following statements is true of a spin-off (or ...