Hershey's decides to start using a compostable material in which to wrap their chocolate. unfortunately, this material begins breaking down once it comes in contact with cocoa butters and then bonds to the chocolate, rendering it inedible. further, this was not discovered until after the nationwide roll out of this new product, costing the company millions in dollars and tremendous loss of customer good will. the product development team was summarily fired for not considering which source of corporate risk?

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent. a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?

What is a potential negative effect of an expansionary policy? decreased borrowing increased interest rates increased inflation decreased available credit