17) Which of the following statements is false? a) An American call on a non-dividend-paying stock has the same price as its European counterpart. b) The price of any call option on a non-dividend-paying stock always exceeds its intrinsic value. c) It is never optimal to exercise a call option on a dividend-paying stock early - you are always better off just selling the option. d) If the present value of the dividend payment is large enough, the time value of a European call option can be negative, implying that its price could be less than its intrinsic value. e) None of the above 18) One of the major differences between a real option and a financial option is that a) a real option is traded in competitive markets. 19) 20) b) a real option is less risky than a financial option. c) a real option has more risk than a financial option. d) a real option is not traded in competitive markets. e) None of the above While the Sarbanes-Oxley Act (SOX) contains many provisions, the overall intent of the legislation was to improve the accuracy of information given to both boards and to shareholders. SOX attempted to achieve this goal in all of the following ways EXCEPT a) Overhauling incentives and independence in the auditing process. b) Mandating the separation of the positions of CEO and Chairman of the Board. c) Stiffening penalties for providing false information. d) Forcing companies to validate their internal financial control processes. e) None of the above In addition to the value of the current NPV of the investment, what other two factors affect the value of an investment and the decision to wait? a) Financing sources and capital decision procedures b) Uncertainty and future cash inflows c) Financing sources and risks d) Uncertainty and the capital budgeting process e) None of the above