Dell Computer had outstanding stock options of 344 million at the end of fiscal year 2001 (outstanding shares are 2,601 million). This is a potential problem to investors because:

a. Potential dilution of common stock of over 13%
b. Severe leverage problem because of the option obligations
c. Of the huge compensation expense that reduces net income
d. The company is obviously near bankruptcy

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

Why is investing in a mutual fund less risky than investing in a particular company’s stock?

Under t, the point (0,2) gets mapped to (3,0). t-1 (x,y) →