Financial Management - Study Mode

[#1196] Long-term equity anticipation security is usually classified as
Correct Answer

(B) long-term options

Explanation

Solution: Long-term equity anticipation security is usually classified as long-term options. Long-term equity anticipation securities (LEAPS) are publicly traded options contracts with expiration dates that are longer than one year.

[#1197] A proposal is not a Capital Budgeting proposal if it:
Correct Answer

(C) brings short-term benefits only

[#1198] Bad debt cost is not borne by factor in case of:
Correct Answer

(C) With Recourse Factoring

[#1199] Financial Leverage arises because of:
Correct Answer

(C) Interest cost

[#1200] High degree of financial leverage means:
Correct Answer

(A) High debt proportion