Jackie receives incentive stock options (isos) with an exercise price equal to the fmv at the date of the grant of $22. jackie exercises these options 3 years from the date of the grant when the fmv of the stock is $30. jackie then sells the stock 3 years after exercising for $35. which of the following statements is (are) true?
1. at the date of grant, jackie will have ordinary income equal to $22.
2. at the date of exercise, jackie will have w-2 income of $8.
3. at the date of sale, jackie will have long-term capital gain of $13.
4. jackie’s employer will have a tax deduction at the time of exercise.
a. 3 only.
b. 3 and 4.
c. 2, 3 and 4.
d. 1, 2 and 4.

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc