The date two business days before the date of record is called ex-dividend date.

When two parties agree on the terms of a transaction, a clearinghouse sits in the middle, acting as both the buyer and the seller.

The clientele effect is a tendency of a company to attract a set of investors whose particular needs for current versus future cash flow match with company’s dividend payouts.

Tax equality on capital gains versus dividends is not correct, ıt should be tax differences 

It should be Determine the optimal capital budget

Broadly speaking, credit risk is the risk that a borrower fails to meet obligations for a loan granted. The correct answer is D.

Vertically integrated multinational corporation commences various stages of production in different countries. The essential motive behind this growth strategy is for the corporations to be able to obtain or have more control over the costs and to reduce the uncertainty of the business environment. The correct answer is D.

Bird-in-the-hand dividend theory states that a company’s value will be maximized by setting a high dividend payout ratio.

 Offshoring: The moving of various operations of a company to another country for reasons such as lower labor costs or more favorable economic conditions in that other country. The correct answer is B.

The risks subject to market risk capital requirements include but are not limited to: (1) default risk, interest rate risk, credit spread risk, equity risk, foreign exchange (FX) risk and commodities risk for trading book instruments; and (2) FX risk and commodities risk for banking book instruments

The widely used communications network is the Society of Worldwide Interbank Financial Telecommunications (SWIFT), which began operations in Europe in 1973.

ıt should be real exchange rate

Horizontal M&A is a form of business combination between two firms in the same industry

According to the Basel Committee, market risk is defined as the risk of losses arising from movements in market prices. The correct answer is E.

Anergy refers to a condition of joining two separate firms producing an outcome that is less than the sum of separate entities.

Corporate restructuring refers to activities of firms that significantly change their business operations and/or financial structure.

Merger is a combination of two firms in a way that only one firm survives after combining. The correct answer is E.

Tender offer is the direct offer of the acquiring firm to stockholders of the target firm, to buy their stocks.

Japan started to liberalize in 1984.

With the enhancement of the Basel-II, the Basel Committee added a new class of risk into the calculation of risk-based capital charges. The Committee defined the operational risk as the “risk of loss resulting from inadequate or failed internal processes, people and systems or from external events”. The correct answer is C.