The Last Day on Which an Owner of an Option

question 79

Multiple Choice

The last day on which an owner of an option can elect to exercise is the _____ date.

• A) ex-payment
• B) ex-option
• C) opening
• D) expiration
• E) intrinsic

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Definitions:

Percentage of Sales Approach

A method for forecasting financial needs based on a fixed percentage of projected sales, often used in budgeting and financial planning.

Profit Margin Percentage

A profitability ratio calculated by dividing net income by revenue, expressing the result as a percentage.

Plowback Ratio

The proportion of earnings retained by a business, rather than distributed to its shareholders as dividends, to reinvest in the core business or to pay debt.

Dividend Policy Decision

The strategy that a company uses to determine the size and timing of its dividends payments to shareholders.