Solution:
Stock option is considered more valuable in situation when stock have highly volatile. A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed upon price and date.
65. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax
Solution:
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax cost of debt. In most cases, this phrase refers to after-tax cost of debt, but it also means the company's cost of debt before taking taxes into account.
66. In capital budgeting, number of non-normal cash flows have internal rate of returns are
Solution:
In capital budgeting, number of non-normal cash flows have internal rate of returns are multiple. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.
67. Future value interest factor takes ____________.
Solution:
Future value interest factor takes Compounding rate. Future value (FV) is the value of a current asset at a specified date in the future based on an assumed rate of growth.
