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Question 120/185

The value of a call option will increase because of:

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Question List (185q)
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Question 2: A company's dividend policy is to pay out 50% of its earning...
Question 3: Which of the following statements about IFRS 7 Financial Ins...
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Question 17: The directors of the following four entities have been discu...
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Question 24: Company A needs to raise AS500 mi lion to invest in a new pr...
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Question 26: The Board of Directors of a listed company have decided that...
Question 27: A company is financed by debt and equity and pays corporate ...
Question 28: A company based in Country A with the A$ as its functional c...
Question 29: Company E is a listed company. Its directors are valuing a s...
Question 30: Integrated reporting is designed to make visible the capital...
Question 31: Two unlisted companies TTT and YYY are being valued. The com...
Question 32: Two companies that operate in the same industry have differe...
Question 33: A listed company is financed by debt and equity. If it incre...
Question 34: A company has some 7% coupon bonds in issue and wishes to ch...
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Question 36: A company's current earnings before interest and taxation ar...
Question 37: The Board of Directors of a listed company wish to estimate ...
Question 38: A company is considering whether to lease or buy an asset. T...
Question 39: A company plans a four-year project which will be financed b...
Question 40: Extracts from a company's profit forecast for the next finan...
Question 41: X exports goods to customers in a number of small countries ...
Question 42: A company has: * A price/earnings (P/E) ratio of 10. * Earni...
Question 43: A project requires an initial outlay of $2 million which can...
Question 44: A company with a market capitalisation of S50million is cons...
Question 45: A listed company follows a policy of paying a constant divid...
Question 46: A company currently has a 5.25% fixed rate loan but it wishe...
Question 47: A manufacturing company based in Country R. where the curren...
Question 48: Company AAB is located in country A whose currency is the AS...
Question 49: The directors of a multinational group have decided to sell ...
Question 50: Company R is a major food retailer. It wishes to acquire Com...
Question 51: Company B is an all equity financed company with a cost of e...
Question 52: A listed company follows a policy of paying a constant divid...
Question 53: On 31 October 20X3: * A company expected to agree a foreign ...
Question 54: Providers of debt finance often insist on covenants being en...
Question 55: A company is owned by its five directors who want to sell th...
Question 56: A listed entertainment and media company produces and distri...
Question 57: Which THREE of the following would be most important if a ho...
Question 58: A company wishes to raise new finance using a rights issue. ...
Question 59: Assume today is 31 December 20X1. A listed mobile phone comp...
Question 60: A product costs USD10 when purchased in the USA. The same pr...
Question 61: Company A is subject to a takeover bid from Company B, both ...
Question 62: A large multi-divisional company in the food processing and ...
Question 63: A large, quoted company that is all-equity financed is plann...
Question 64: A company needs to raise $20 million to finance a project. I...
Question 65: A company has convertible bonds in issue. The following debt...
Question 66: A company intends to sell one of its business units, Company...
Question 67: Company A is proposing a rights issue to finance a new inves...
Question 68: An unlisted company which is owned and managed by its origin...
Question 69: A company's latest accounts show profit after tax of $20.0 m...
Question 70: Company A is located in Country A, where the currency is the...
Question 71: A company is planning to repurchase some of its shares. Rele...
Question 72: A listed entertainment and media company produces and distri...
Question 73: XYZ is a multi-national group with subsidiary AA in Country ...
Question 74: An unlisted company operates in a niche market, exploring th...
Question 75: A company needs to raise $40 million to finance a project. I...
Question 76: The directors of a financial services company need to calcul...
Question 77: A company is considering the issue of a convertible bond com...
Question 78: Which THREE of the following methods of business valuation w...
Question 79: Company C has received an unwelcome takeover bid from Compan...
Question 80: Company A has just announced a takeover bid for Company B. T...
Question 81: AA is considering changing its capital structure. The follow...
Question 82: Two companies that operate in the same industry have differe...
Question 83: Z wishes to borrow at a floating rate and has been told that...
Question 84: Select the category of risk for each of the descriptions bel...
Question 85: Z wishes to borrow at a floating rate and has been told that...
Question 86: The Board of Directors of a small listed company engaged in ...
Question 87: X exports goods to customers in a number of small countries ...
Question 88: Company T is a listed company in the retail sector. Its curr...
Question 89: A company has a covenant on its 5% long-term bond, stipulati...
Question 90: Which of the following best explains why the interest rate p...
Question 91: Using the CAPM, the expected return for a company is 10%. Th...
Question 92: Company T is a listed company in the retail sector. Its curr...
Question 93: A large, listed company in the food and household goods indu...
Question 94: Using the CAPM, the expected return for a company is 10%. Th...
Question 95: Which of the following would be a reason for a company to ad...
Question 96: On 31 October 20X3: * A company expected to agree a foreign ...
Question 97: A company's main objective is to achieve an average growth i...
Question 98: A company aims to increase profit before interest and tax (P...
Question 99: A company wishes to raise new finance using a rights issue. ...
Question 100: DFG is a successful company and its shares are listed on a r...
Question 101: A company plans a four-year project which will be financed b...
Question 102: Which THREE of the following are benefits of integrated repo...
Question 103: Company X is based in Country A, whose currency is the A$. I...
Question 104: Company A, a listed company, plans to acquire Company T, whi...
Question 105: Company X plans to acquire Company Y. Pre-acquisition inform...
Question 106: An entity prepares financial statements to 30 June. During t...
Question 107: A company has undertaken a transaction with its shareholders...
Question 108: Which THREE of the following are likely to be strategic reas...
Question 109: Which TWO of the following statements about debt instruments...
Question 110: An all-equity financed company currently generates total rev...
Question 111: Company S is planning to acquire Company T. The shareholders...
Question 112: A company intends to sell one of its business units. Company...
Question 113: It is now 1 January 20X0. Company V, a private equity compan...
Question 114: A company has: * $6 million market value of equity * $4 mill...
Question 115: Company A, a listed company, plans to acquire Company T, whi...
Question 116: Company A is planning to acquire Company B at a price of $ 6...
Question 117: A company aims to increase profit before interest and tax (P...
Question 118: A company has announced a rights issue of 1 new share for ev...
Question 119: Company C invests heavily in Research and Development an nee...
Question 120: The value of a call option will increase because of:...
Question 121: A listed company in a high growth industry, where innovation...
Question 122: If a company's bonds are currently yielding 8% in the market...
Question 123: Company P is a pharmaceutical company listed on an alternati...
Question 124: A company in country T is considering either exporting its p...
Question 125: A company plans to acquire new machinery. It has two financi...
Question 126: A national airline has made an offer to acquire a smaller ai...
Question 127: A listed company plans to raise $350 million to finance a ma...
Question 128: Company M plans to bid for Company J. Company M has 20 milli...
Question 129: Company J plans to acquire Company K, an unlisted company wh...
Question 130: RR has agreed to sell goods to XX for S20.000 XX will pay wh...
Question 131: A company has: * 10 million $1 ordinary shares in issue * A ...
Question 132: A company is considering taking out $10.000,000 of floating ...
Question 133: A company generates and distributes electricity and gas to h...
Question 134: Using the CAPM, the expected return for a company is 11%. Th...
Question 135: At the last financial year end, 31 December 20X1, a company ...
Question 136: Company A is unlisted and all-equity financed. It is trying ...
Question 137: A company intends to sell one of its business units, Company...
Question 138: A listed company is planning a share repurchase. Research in...
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Question 140: A company needs to raise $20 million to finance a project. I...
Question 141: A new company was set up two years ago using the personal fi...
Question 142: Company A has just announced a takeover bid for Company B. T...
Question 143: A company is wholly equity funded. It has the following rele...
Question 144: Which three of the following are most likely be primary obje...
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Question 146: The financial assistant of a geared company has prepared the...
Question 147: Two unlisted companies TTT and YYY are being valued. The com...
Question 148: A company plans to cut its dividend but is concerned that th...
Question 149: Which THREE of the following statements are correct?...
Question 150: A manufacturing company is based in Country L whose currency...
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Question 152: The competition authorities are investigating the takeover o...
Question 153: Company A, a listed company, plans to acquire Company T, whi...
Question 154: Company W has received an unwelcome takeover bid from Compan...
Question 155: A company is preparing an integrated report according to the...
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Question 157: The directors of the following four entities have been discu...
Question 158: A company is in the process of issuing a 10 year $100 millio...
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Question 160: An all equity financed company reported earnings for the yea...
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Question 162: A company's latest accounts show profit after tax of $20.0 m...
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Question 168: Modigliani and Miller are the main proponents of the view th...
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Question 184: A company has identified potential profitable investments th...
Question 185: A company's current earnings before interest and taxation ar...