1. Which of the following current asset investment policies emphasizes holding minimal current assets.
A Relaxed current asset investment policy
B Restriced current asset investment policy
C Moderate current asset investment policy
D Fat cat current asset investment policy
E Precautionary current asset investment policy
2. The Jackson Company has just paid a dividend of $3.00 per share on its common stock, and it expects this dividend to grow by 10 percent per year, indefinitely. The firm has a beta of 1.50; the risk-free rate is 10 percent; and the expected return on the market is 14 percent. Which of the following is the required rate of return as per the capital asset pricing model (CAPM) approach?
A 9 percent
B 12 percent
C 7 percent
D 16 percent
E 18 percent