Term
| Which of the following have the least senior claim on a venture’s asset? |
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Definition
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Term
| The right for existing owners to maintain their ownership share by purchasing sufficient shares to keep their percentage share of the firm is called? |
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Definition
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Term
| Which of the following stock can be structured to assure the shareholder that they will share in the payment of any dividends to common stockholders? |
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Definition
| participating preferred stock |
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Term
| Which of the following provides the option to exchange into common stock? |
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Definition
| convertible preferred stock |
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Term
| Which of the following offers the option where the dividend obligation can be satisfied in cash or by issuing additional par amounts of the preferred security? |
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Definition
| paid in kind preferred stock |
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Term
| Which of the following requires that all previously unpaid preferred dividends must be paid prior to any common dividend? |
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Definition
| cumulative preferred stock |
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Term
| Convertible debt has all of the following except: |
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Definition
| regular dividend payments |
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Term
| The right, not the obligation, to purchase a specified asset at a specified price is called a: |
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Definition
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Term
| The right, not the obligation, to sell a specified asset at a specified price is called a: |
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Definition
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Term
| An option that can be exercised at any time until expiration is called a: |
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Definition
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Term
| An option that can be exercised only at the expiration date is called a: |
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Definition
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Term
| option that can be exercised only at a specific set of dates is called a: |
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Definition
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Term
| Which of the following is an example of a call option which is out of the money? |
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Definition
| The option to buy at $13, the stock is worth $12. |
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Term
| Which of the following is an example of a call option which is in the money? |
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Definition
| The option to buy at $11, the stock is worth $12. |
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Term
| Which of the following is an example of a put option which is out of the money? |
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Definition
| The option to sell at $11, the stock is worth $12. |
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Term
| Which of the following is an example of a put option which is in the money? |
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Definition
| The option to sell at $13, the stock is worth $12. |
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Term
| To calculate the enterprise valuation cash flow, one begins with which of the following information from the income statement? |
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Definition
| earnings before interest and taxes times one minus the enterprise tax rate |
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Term
| When consistent assumptions are used, we: |
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Definition
| get the same value for equity under the enterprise and equity methods of valuation |
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