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Carolina Company has options for 100,000 shares outstanding that may be exercised at the

A. not include the options because they are antidilutive.
B. include the options because they could dilute earnings.
C. not include the options because they cannot be exercised until June 30, 2003.
D. include the options because the shares declined in price during 2001.

According to Markowitz’s theory, the points on the efficient frontier represent the portfolios which provide:

A. the lowest risk and highest return compared with all of the other attainable portfolios.
B. maximum diversification benefits among risk assets.
C. he cheapest construction cost and the most efficient choice.

The population follows an unknown distribution. The sample mean is 120 and the standard error of the sample mean is 6. The sample size is 120. The 90% confidence interval for the population mean is closest to:

A. 108.24 to 131.76.
B. 70.5 to 169.5.
C. 110.1 to 129.9.

In 1998, Copper, Inc. completed a $4,000,000 bond issue to finance the purchase of equipment used in its operations. The bonds were convertible into common stock at a conversion rate of 100 shares per $1,000 bond. In 2001 the market price of Copper, Inc.抯 common stock rose above $10 per share, and all of the outstanding bonds were converted into common stock when the common stock was selling for an average price of $15 per share. Copper, Inc. prepares its Statement of Cash Flows using the indirect method. Given the above information, Copper 抯 Statement of Cash Flows for the year ended December 31, 2001 should include the following:

A. no reporting of the transaction in the Statement of Cash Flows, except for a footnote describing the conversion of the bonds into common stock.
B. under Cash Flow from Financing, "Retirement of Bonds: $4,000,000" and "Issuance of Common Stock: $4,000,000."
C. under Cash Flow from Financing, "Retirement of Bonds: $4,000,000" and "Issuance of Common Stock: $6,000,000" and under Cash Flow from Investing "Loss on Retirement of Bonds: $2,000,000."
D. no reporting of the transaction.

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