A stock dividend would most likely result in a ______ debt / equity ratio and a ______ current ratio.

• A.unchanged, lower.
• B.unchanged, unchanged.
• C.lower, unchanged.

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All of the following statements about the value of a call option at expiration are true EXCEPT the:

• A.value of the long position equals zero or the stock price minus the exercise price, whichever is higher.
• B.value of the long position equals zero or the exercise price minus the stock price, whichever is higher.
• C.short position in the same call option has a zero value for all stock prices equal to or less than the exercise price, and can result in a loss if the stock price exceeds the exercise price.

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Regarding the reversals of impairments of long-lived assets,

• A.The US GAAP allows the loss to be reversed if the asset is categorized as held for use.
• B.The US GAAP disallows the loss to be reversed if the asset is categorized as held for sale.
• C.The IFRS allows the loss to be reversed regardless of whether the asset is held for use or sale.

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What is the minimum number of years required for $1,000 invested at 7 % per annum to exceed
$ 1,200 invested at 6 % per annum?

• A.15.
• B.17.
• C.20.

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Which of the following should be classified as financing cash flow?
I). purchase and sale of debt of other entities.
II). loans to other entities and collection of loans to other entities.
III). issuance and redemption of debt (bonds and notes).
IV). payments of interest on the company's debt securities.

• A.all of them.
• B.III only.
• C.I, II and III.

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