Delta Importers has a pure discount loan with a face value of $180,000 due in one year.

The Sarbanes-Oxley Act of 2002 requires firms to report ESO grants within how many days of the grant?    A.  2 calendar days B.  2 business days C.  7 calendar days D.  30 business days E.  45 calendar days Refer to section 24.4

43.

Delta Importers has a pure discount loan with a face value of $180,000 due in one year. The assets of the firm are currently worth $265,000. The shareholders in this firm basically own a _____ option on the assets of the firm with a strike price of _____.    A.  put; $180,000. B.  put; $265,000. C.  warrant; $265,000. D.  call; $180,000. E.  call; $265,000. Refer to section 24.5

44.

Jack and Jill are house hunting. They find House A situated on a hill. They really like the house but want to continue searching the market for one more week before making their final decision to buy the house. To avoid having someone else purchase House A while they continue their house hunting, they decide to place a $2,500 deposit on House A. This deposit will apply to the purchase price if they buy House A. If they do not buy House A, they will forfeit the $2,500. Essentially, Jack and Jill have a _____ on House A.    A.  financial put B.  financial call C.  warrant D.  real put E.  real call Refer to section 24.6

45.

The option to wait: I. may be of minimal value if a project is dependent upon rapidly changing technology. II. is partially dependent upon the discount rate applied to the project being evaluated. III. is defined as temporarily shutting down a project for a period of time. IV. has a value equal to the NPV of a project if it is started at a later date minus the NPV if the project is started today.    A.  I and III only B.  II and IV only C.  I and II only D.  II, III, and IV only E.  I, II, and IV only Refer to section 24.6