Question 1 (1.5 points) Saved Which of the following components of executive compensation package best aligns the interests of the executives with those of the shareholders of the firm? Perks (e.g. personal drivers and club membership) Cash bonus Severance package O Base salary Long-term incentive plan Question 2 (1.5 points) Please fill in the blank. If you sell a stock put option, you ------ May be forced to buy the underlying stock if the option is exercised May be forced to sell the underlying stock if the option is exercised Have the right to exercise the option by buying the underlying stock Maybe forced to buy or sell the underlying the stock depending on the choice of the option holder Have the right to exercise the option by selling the underlying stock Question 3 (1.5 points) A U.S. company would like to purchase 2,000 bushels of wheat from a Canadian farmer at $420 CAD per bushel in 12 months. The company has budgeted $600,000 USD for this purchase. The current exchange rate is $0.721 USD/CAD. Given the uncertain exchange rate in 12 months, which of the following contracts would best help the company stay within its budget for this purchase? O A forward contract that allows the company to purchase CAD with USD at $0.721 USD/CAD today O A forward contract that allows the company to purchase USD with CAD at $0.721 USD/CAD in 12 months O A forward contract that allows the company to purchase CAD with USD at $0.714 USD/CAD in 12 months O A forward contract that allows the company to purchase USD with CAD at $0.714 USD/CAD in 12 months O A forward contract that allows the company to purchase CAD with USD at $0.721 USD/CAD in 12 months Question 4 (1.5 points) For a typical firm, which of the following correctly ranks the cost of capital from the lowest to the highest Rd refers to the before-tax cost of debt andre refers to the cost of common equity. Ore