div. policy is irrelevant when there are no. The assets of the target firm must be shown at their fair market value on the books of the bidder. : the cost of equity varies directly with the. D/e ratio of the firmfirm commitment offering is underwriting where the syndicate buys the entire issue from the issuing firm, assuming full financial responsibility for any unsold shares record date of friday, july 22 for its rights offering. 2 days before the date of record, but shares go ex-rights four days before the date of recordcross-hedging. As an inv. tor, you should:buy puts on str stocks. a stock currently sells for . 50. A call option on the stock has an exercise price of . 00. The call currently sells in the market for . 50. : the time value associated with the call option is . 50you purchased a may american call option on netscape stock with an exercise price of . thereforeyou have the right to buy.