Employee network groups, in addition to furthering their own interests, sometimes act as advisors to business units in large firms

Which of the following presents what the effects on historical financial data might have been if a consummated transaction had occurred at an earlier date?

a. Prospective financial statements b. Pro forma financial information c. Interim financial information d. A financial projection

If your firm is uninsured, the NPV of implementing the new safety policies is closest to ________

Your firm faces an 8% chance of a potential loss of $50 million next year. If your firm implements new safety policies, it can reduce the chance of this loss to 3%, but the new safety policies have an upfront cost of $250,000. Suppose that the beta of the loss is 0 and the risk-free rate of interest is 5%. A) $2.25 million B) -$.25 million C) $2.5 million D) $2.15 million