Long-run financial risk:
A. can frequently be hedged on a permanent basis.
B. is best hedged on a division by division basis within a conglomerate.
C. is related more to near-term transactions than to advancements in technology.
D. generally results from changes in the underlying economics of a business.
E. can generally be hedged such that the financial viability of a firm is protected.
Amy is the chief financial officer of a retail toy store. Recently, she decided that the
firm should expand its operations and open two additional stores. Within a very brief
period, it was obvious that Amy had made a very bad decision in opening those stores,
given that the economy is in the middle of a severe recession. In reflecting back on her
decision, Amy realizes that she made a bad decision due to a reasoning error. Which
one of the following areas of study best applies to this situation?
A. corporate ethics
B. financial statement analysis
C. managerial finance
D. debt management
E. behavioral finance
Jasper United had sales of $21,000 in 2008 and $24,000 in 2009. The firm's current
accounts remained constant. Given this information, which one of the following
statements must be true?
A. The total asset turnover rate increased.
B. The days' sales in receivables increased.
C. The net working capital turnover rate increased.
D. The fixed asset turnover decreased.
E. The receivables turnover rate decreased.
What is the price of a put option given the following information?