ACC 576 TUTOR Learn by Doing/acc576tutor.com ACC 576 TUTOR Learn by Doing/acc576tutor.com | Page 48

52. Which one of the following is not a factor routinely considered in
valuing a stock option?
53. Charles Allen was granted options to buy 100 shares of Dean
Company stock. The options expire in one year and have an exercise
price of $60.00 per share. An analysis determines that the stock has an
80% probability of selling for $72.50 at the end of the one-year option
period and a 20% probability of selling for $65.00 at the end of the
year. Dean Company's cost of funds is 10%. Which one of the
following is most likely the current value of the 100 stock options?
54. Which one of the following is not a limitation of the basic BlackScholes option pricing model?
55. Which one of the following characteristics is not an advantage of
the Black-Scholes option pricing model?
56. Which one of the following options, A through D, is most likely to
have the greatest value (all other things being equal)?
57. Assume the following abbreviated Income Statement: In a
common-size income statement, which one of the following
percentages would be shown for Finance Expense?
58. Which one of the following approaches to valuing a business is
most likely to be appropriate when the business has been losing money
and is going to be sold in a distressed sale?
59. Which one of the following is least likely to be the reason an entity
would seek a valuation of the entity as a going concern?
60. Assume the following abbreviated Balance Sheet: In a commonsized balance sheet, which one of the following percentages would be
shown for current liabilities?
=====================================================================================