1. Bigelow Corp has total assets of $850,000, sales of $1,350,000, and one class of common stock with 375 shareholders and a class of preferred stock with 250 shareholders, both of which are traded over the counter. Which provisions of the Securities Exchange Act of 1934 apply to Bigelow Corp?
2. A portfolio contains equal investments in 10 stocks. Five have a beta of 1.2; the remainder has a beta of 1.4. What is the portfolio beta?
3. Address Nathan’s concerns that Saturn’s marketing department’s budgeted sales estimates may be too high. What capital budgeting options are available to compensate for such an error.