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Multiple Finance Questions

The computation of basic earnings per share will include consideration of
a. all convertible securities.
b. only common shares outstanding.
c. all shares outstanding and all convertible securities.
d. only preferred shares outstanding

Question 2: Multiple Choice

A derivative is a financial instrument whose value is determined by
a. regulatory body such as the SEC.
b. an underlying security
c. futures and options
d. the Securities Exchange Commission

Question 3: Multiple Choice

Which contract is an option?
a call
a put
a future
both A and B are options.

To avoid a hostile takeover, a company may seek the help of a 'white knight' or perform strategies of their own. What exactly does this mean, and how is it accomplished??

The spot rate of the British pound to the dollar is 1.68 ($/£). The 180 day forward rate is $1.71, the annualized forward premium is: (Show your work/calculations/formulas)

Solution Preview

1. B. Only Common Shares outstanding

2. B. An underlying security

3. D. Both A and B are options

4. The white knight, refers to the friendly acquirer ...

Solution Summary

The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. It can be easily understood by anyone with a basic understanding of Finance. Overall, an excellent solution.