Equity Swaps Can Be Used for All of the Following

question 26

Multiple Choice

Equity swaps can be used for all of the following except:

• A)to synthetically buy stock
• B)to synthetically sell stock
• C)to convert dividends into capital gains
• D)to synthetically re-align an equity portfolio
• E)none of the above

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Definitions:

Machine-Hours

A measure of the amount of time machines are run, often used as a base for allocating factory overhead.

Total Job Cost

The cumulative cost of materials, labor, and overhead for a specific job or project.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, making it possible to track the cost of specific jobs.

Machine-Hours

A measure of production time, used as a basis for allocating manufacturing overhead costs based on the number of hours machines are operated.