Max's Tire Center Company

question 90

Multiple Choice

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.

-Refer to the selected data provided for Max's Tire Center. Which of the following would result from a vertical analysis of Max's balance sheet in 2012?

• A) Fixed assets increased $12,000 or 7.14% during 2012.
• B) Total assets is $500,000 in 2012.
• C) Fixed assets is 27.6% of total assets in 2012.
• D) Fixed assets is 30% of total assets in 2012.

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Definitions:

Exercise Price

The specified price allowing the bearer of a call option to acquire, or a put option to dispose of, the underlying asset or good.

Strike Price

In options trading, this is the price at which the holder of the option can buy or sell the underlying asset.

Shares

Units of ownership interest in a corporation or financial asset that provide an equal distribution in any profits, if any are declared, in the form of dividends.

European Options

Financial derivatives that give the holder the right to buy or sell the underlying asset at a specified price only at the expiration date.